Massive Hawala and GST Scam Busted in Bareilly

Police in Bareilly, Uttar Pradesh, busted a Rs 24 crore GST and illegal transaction network involving fake firms and mule accounts. Two men have been arrested, and investigations suggest a linkage to a hawala operation. The racket was uncovered after a local artisan received a questionable tax notice.

Authorities in Bareilly, Uttar Pradesh, have dismantled a significant financial scam involving over Rs 24 crore in fraudulent transactions. This complex network, which entailed illegal money transfers, was brought to light following the arrest of two individuals reported to have utilized fake firms and mule accounts to facilitate these activities.

The racket's exposure came about after an unsuspecting embroidery artisan received a hefty tax notice for transactions he hadn’t authorized. Investigations led by Superintendent of Police (South) Anshika Verma showed that the accused preyed on small traders and workers, enticing them with business expansion promises while misusing their identity documents for fraudulent company and account creations.

The probe revealed that numerous shell companies, like Satya Sahab Traders, and others, were instrumental in the fraudulent operations, generating fake invoices to dodge GST. The funds involved suggest a possible hawala network connection, with local police continuing to track additional suspects and beneficiaries.