BENGALURU: The Enforcement Directorate (ED), Bengaluru Zone, has provisionally attached Rs 1.80 crore in Tax Deducted at Source (TDS) credited against fake PANs in the Karnataka Industrial Area Development Board (KIADB) ‘double compensation scam’ in Dharwad.
The scam, which led to fraudulent claims of compensation for land acquisition, was masterminded by VD Sajjan, a retired special land acquisition officer in Dharwad, in collusion with other accused people, including KIADB and bank officials.
The accused created fake Aadhaar identities by fraudulently updating demographic details such as name, address, and mobile number through applications submitted to the Unique Identification Authority of India (UIDAI), the press report said.
These fake credentials were then used to obtain fake PANs. Using the PANs, the accused opened bank accounts and submitted second-time compensation claims before KIADB, impersonating landowners who had either already been compensated or were deceased, it said.
The compensation amounts were credited into the fake accounts, and the funds estimated at around Rs 46 crore were withdrawn in cash. During the withdrawal, TDS under Section 194N of the Income Tax Act, 1961, was deducted and credited against the fake PANs. The ED has now classified this TDS amount as “proceeds of crime.” The demographic details in the Aadhaar database were altered back to the original identity after the funds were withdrawn.