Bareilly,

06 Jan (HS): Police in Uttar Pradesh's Bareilly district have identified a

suspected hawala and GST fraud network involving unlawful financial

transactions worth about Rs 24 crore, arresting two individuals who reportedly

utilized phony organizations and so-called mule accounts to transport money,

authorities said Tuesday. The fraud came to light after a tiny zari (embroidery)

artisan received an income tax notice for roughly Rs 1.5 crore for activities

he was ignorant of, Bareilly Superintendent of Police (South) Anshika Verma

said on Monday. According to authorities, the accused approached small

businessmen and daily wage workers, claiming to help them develop their

enterprises or join export markets.

They

reportedly got identification credentials such as Aadhaar and PAN cards,

created bank accounts in their names, and formed shell firms that were

subsequently utilized for large-scale unlawful transactions, according to the

police. Verma stated that investigations indicated that a fictitious company,

Satya Sahab Traders, was formed in the artisan's name, and bank accounts were

opened in private and public sector banks. Within a year, this business

processed almost Rs 24 crore in dubious transactions, she stated. Police also

discovered that numerous additional businesses, including Mahavir Trading

Company, Mahakal Traders, and Sumit Traders, existed solely on paper and were

used to create bogus bills and invoices to avoid GST.

At

first look, it appears to be a GST fraud, but the transfer of cash implies the

participation of a hawala network, according to the SP, who also mentioned that

a man from the neighboring Shahjahanpur district is being investigated. The two

accused, Shahid Ahmed (38) and Amit Gupta (38), were apprehended in the Bhuta ares

of district Bareilly. Police claimed they discovered several mobile phones and

cash from their possession. A complaint has been filed under the relevant

provisions of the Bharatiya Nyaya Sanhita and other laws, and further investigation

is being conducted to discover further beneficiaries and linkages in the

network, they added.

Hindusthan Samachar / Abhishek Awasthi