₹24-Crore Hawala, GST Scam Uncovered in Bareilly, 2 Key Figures Arrested

Image Source: Internet

In a major crackdown, police in Uttar Pradesh's Bareilly district have dismantled a suspected hawala and GST fraud network, worth around ₹24 crore. Two men, Shahid Ahmed and Amit Gupta, were arrested in connection with the racket, which involved targeting small traders and daily wage workers with promises of business expansion and export opportunities. According to officials, the accused created fake firms and bank accounts to facilitate large-scale unauthorized transactions. A small zari artisan was initially implicated in the case when he received an income tax notice for transactions he knew nothing about. Investigations revealed that a fake firm, Satya Sahab Traders, was created in the artisan's name, with bank accounts opened in both public and private sector banks. Over ₹24 crore in suspicious transactions were routed through this firm in just a year. The police also found several other shell companies, including Mahavir Trading Company, Mahakal Traders, and Sumit Traders, which existed only on paper and were used to generate fake bills and invoices to evade GST. While the initial investigation suggests a GST fraud, the movement of funds indicates possible involvement of a hawala network. A man from the neighbouring Shahjahanpur district is also being investigated. The police have registered a case under relevant sections of the law and are continuing to probe the network to identify additional beneficiaries and links. The arrests were made from the Bhuta area of Bareilly, where several mobile phones and cash were recovered from the accused. The police are working to unravel the complex web of transactions and identify those involved in the alleged scam.