Daijiworld Media Network - Udupi (JD)
Udupi, Feb 21: Another incident of alleged tax fraud has surfaced in the Udupi City Municipality, resulting in the arrest of two individuals, including a municipal staff member.
The Udupi City police station has registered a case against two persons in connection with the alleged misappropriation of property tax funds paid to the Udupi City Municipality.
The arrested have been identified as B Shalini (56), a resident of Malpe Road, and Ganesh (24), a resident of Satchidananda Layout, Kukkikatte, Udupi.
According to the complaint filed by municipal authorities, on February 16, 2026, one Anand Suvarna visited the Udupi City Municipal office to pay property tax amounting to Rs 34,730 for a period of 12 years in respect of a building at Kalmadi. The amount was reportedly handed over to a woman identified as Shalini, who was working outside the office premises. She issued a receipt dated October 16, 2025, acknowledging the payment.
However, subsequent verification through the municipality’s online system revealed that the property tax remained unpaid. When questioned, Shalini allegedly admitted to having received the tax amount from Anand Suvarna. Thereafter, on February 16, 2026, a fresh challan was generated in Anand Suvarna’s name, and a sum of Rs 35,213 was paid towards the dues.
The complaint further alleges that Shalini failed to remit the tax amount to the government and instead affixed the seal of Union Bank on the challan, thereby misappropriating the funds and cheating the government in collusion with others.
Based on the complaint lodged by the municipality, a case has been registered at the Udupi City police station.
The investigation is being carried out under the guidance of Udupi sub-division DySP Belliappa and is led by police inspector Mahesh Prasad P of the Udupi City police station. The team, comprising PSI Gopalakrishna Jogi and staff members Surendra Abdul Basheer, Hemanth, Savitha, Pavithra and Spoorthi, arrested the accused on February 20, 2026.
Both accused were taken into custody and produced before the competent court in Udupi. Further investigation is under way.