Kanpur (Uttar Pradesh) [India], May 8 (HBTV): The Kanpur Nagar Commissionerate on Friday arrested Mahfooz Ali, the alleged mastermind behind an INR 146 crore financial fraud racket involving fake firms and illegal transactions, from the Jajmau area of Kanpur.
The gang operated by setting up shell companies using the PAN cards of semi-literate labourers. The operation was executed by a joint team comprising the Chakeri Police, the Cyber Cell and the Surveillance Unit.
According to the police, Mahfooz had opened approximately 68 bank accounts in the names of his family members. Through these accounts, transactions totalling INR 146 crore were routed via a single firm, ‘Afisa Enterprises’. The investigation revealed that the funds involved were derived from scrap and slaughterhouse trades. Mahfooz allegedly withdrew these funds and, in exchange for a commission, returned the money in cash to the same firms from which it originated.
The police investigation has also identified the alleged mastermind of the syndicate as a lawyer named Firoz Khan, who is accused of facilitating the creation of fraudulent GST-registered firms. Six criminal cases are already registered against Mahfooz. Police are searching for the remaining accomplices, including Firoz.
‘Scrap dealers and those involved in the slaughter business were engaged in circulating money. This involved GST evasion, bogus companies, income tax fraud and hawala transactions. Several fake firms have been identified, and beneficiaries have been named, including Tahir, Ajmeri, Rustam and associates. Notices have been issued, and investigations are ongoing. Five people have already been sent to jail, and further notices are being issued,’ Police Commissioner Raghubir Lal said.
‘The investigation continues, focusing on the verification of transactions and beneficiaries. A robbery case on February 1 revealed links to illegal cash transactions. Five culprits were arrested, and INR 11 lakh was recovered. Accounts were opened fraudulently, fake GST registrations were made, and 68 accounts were traced. The racket spans Punjab, Himachal, Delhi, West Bengal and Uttar Pradesh. GST and Income Tax officials are assisting. Transactions across multiple banks have taken place,’ he added. (ANI)