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Melbourne: Gursewak Dhillon, a part-time taxi driver who dumped three-year-old Gurshan Singh Channa's body nearly 20 km from his home in Melbourne, was being probed for "possible immigration fraud", an official said on Wednesday.

Immigration officials were probing allegations that Dhillon was in the country on a fake passport, The Age reported.

"Allegations have been made that the man charged is being investigated for possible immigration fraud," said a spokesperson at the Department of Immigration.

Gurshan was found dead on Wildwood Road on Thursday night after a massive search following a complaint by his parents who were staying in Lalor, over 20 km away.

Dhillon was remanded in custody to appear for a committal hearing June 29.

"Everything has gone wrong," The Age quoted Dhillon's wife, Sim Kaur, as saying.

Dhillon, who was a housemate of Gurshan's parents, is alleged to have placed the child in the boot of his car unconscious, but still alive.

It was still unclear as to how the boy was rendered unconscious; an autopsy has failed to determine a cause of death.

Gurshan arrived in Australia in January with his parents. The family was due to return to India as his father Harjit Singh Channa failed to find work in Melbourne.

Singh and his wife Harpreet Singh Channa gave statements to police Friday but officials say they are not suspects.

Gurshan's death had caused an uproar in India, with New Delhi Friday describing the incident as "most unfortunate".

There have been a string of attacks on Indians in Australia, with one of them proving fatal. Nitin Garg was fatally stabbed January 2 while on his way to work in this city.

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