Kanpur (Uttar Pradesh) [India], May 8 : The Kanpur Nagar Commissionerate on Friday arrested Mahfooz Ali alias "Pappu Chhuri," the alleged mastermind behind a Rs 146 crore financial fraud racket involving fake firms and illegal transactions, from the Jajmau area of Kanpur.
This 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 Rs 146 crore were routed via just a single firm, 'Afisa Enterprises.' The investigation yielded a startling revelation that the funds involved were derived from the scrap (junk) and slaughterhouse trades. Mahfooz would withdraw these funds and, in exchange for a commission, return the money in cash to the very firms from which it originated.
The police's intensive investigation has also unmasked the syndicate's true mastermind: a lawyer named Firoz Khan, who facilitates the creation of these fraudulent GST-registered firms. Currently, six criminal cases are already registered against Mahfooz. The police are now actively searching for the remaining accomplices, including the lawyer, Firoz.
Speaking to reporters, Police Commissioner Raghubir Lal said," 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 linked. Notices have been issued, and investigations are ongoing. Five people have already been sent to jail, and further notices are being issued."
"The investigation continues, focusing on the verification of transactions and beneficiaries. A robbery case on 1 February revealed links to illegal cash transactions. Five culprits were arrested, and Rs 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 happened," said the Commissioner.
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