India News | Delhi: Two Arrested in IT Refund Fraud Case

New Delhi, Jul 2 (PTI) The Delhi Police's Economic Offences Wing has arrested two people for their alleged involvement in a income tax refund fraud case, according to a statement issued on Sunday.

Nitin Mehta (36) and Nikunj Dudeja (37) were arrested on June 30 on a complaint registered by Income Tax Department, Delhi, IRS officer Mohit Garg, it said.

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They have also been found involved in cases of cheating, the statement issued by the police said.

The complaint, received from the DCIT, stated that during scrutiny process, the income tax department observed that some refunds had been issued to some fake assessees in a suspicious manner and without receipt of any refund application under section 154 of the Income Tax Act, according to the statement.

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"The refund amount was 3.36 crore disbursed to 20 assessees for the financial years 2012-13, 2013-14 and 2014-15," it said.

"Moreover, TDS reflected in their form 26AS showed that the TDS was deducted by struck off companies whereas their bank accounts did not reflect any payments received for any assignment," the statement said.

None of the assessees were traceable at the address furnished in their PAN cards which were obtained on fake documents, it said.

"The investigation revealed that out of 20 bank accounts of fake assesses, 19 bank accounts were opened on the recommendation of VBMCS Sales Pvt. Ltd. and the assessees were shown as employees of the company," Deputy Commissioner of Police, Economic Offences Wing, MI Haidar said in the statement.

The accused -- Nitin Mehta and Nikunj Dudeja -- are directors of VBMCS Sales Pvt. Ltd., it said.

During investigation, the complaint was examined and relevant documents were seized, Haidar said.

"Relevant bank statements were analysed which revealed that a huge amount was collected in fake accounts and later withdrawn, and thus fraud on public money committed," the officer said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)