₹24 Crore Financial Fraud Uncovered in Bareilly
Police in Bareilly have uncovered a suspected hawala and GST fraud network involving illegal financial transactions worth nearly ₹24 crore.
Two men have been arrested in connection with the case, officials said on Tuesday.
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The alleged racket came to light after a small zari artisan received an income tax notice of almost ₹1.5 crore for transactions he claimed he had no knowledge of.
Income Tax Notice Triggers Investigation
Bareilly Superintendent of Police (South) Anshika Verma said the case surfaced when the artisan approached the police after receiving the notice.
He told investigators that he had never carried out such high-value transactions.
A preliminary probe revealed that a fake firm had been created in his name without his knowledge.
Fake Firms and Mule Accounts Used
According to police, the accused targeted small traders, artisans, and daily wage workers.
They allegedly promised to help them grow their businesses or enter export markets.
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Using this pretext, they collected identity documents such as Aadhaar and PAN cards.
Bank accounts were then opened in the victims’ names. Shell companies were floated using these details.
One such firm, Satya Sahab Traders, was created in the name of the zari artisan. Police said nearly ₹24 crore in suspicious transactions were routed through this firm within a year.
GST Fraud and Hawala Angle
Investigators also found several other firms that existed only on paper. These included Mahavir Trading Company, Mahakal Traders, and Sumit Traders.
Police said these firms were used to generate fake bills and invoices to evade GST.
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While the case initially appeared to be a GST fraud, the movement of funds suggested a possible hawala network.
The police said a man from Shahjahanpur district is also under investigation for a possible role in the racket.
Two Accused Arrested
The two arrested accused have been identified as Shahid Ahmed and Amit Gupta, both aged 38. They were arrested from the Bhuta area of Bareilly.
Several mobile phones and cash were recovered from their possession during the arrest, police said.
Case Registered, Probe Continues
A case has been registered under relevant sections of the Bharatiya Nyaya Sanhita and other applicable laws. Police said further investigation is underway to trace the full network.
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Officials are now working to identify other beneficiaries, financial links, and possible interstate connections involved in the fraud.
Police have also appealed to small traders and workers to be cautious while sharing personal documents and to verify any financial or business-related offers.
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