The West Zone Crime Branch has uncovered a major ₹1,000 crore international trade fraud in which a Kanpur-based network allegedly cheated multiple European companies by promising steel and iron exports but never supplying the goods. The case came to light after a reputed Czech Republic steel company transferred $200,000 and later complained to the police when no consignment was delivered.
Fake export deal used to siphon funds
According to investigators, Arvind Mahant Yadav, a resident of Naubasta, used the address of a firm operating from Panki’s UPTON estate under the name Vardhman Industries to approach foreign buyers through international B2B trading platforms. He allegedly offered steel at below-market rates and persuaded the company to transfer advance payments into his Canara Bank and Indian Bank accounts.
After receiving the funds, the accused reportedly delayed shipments on various pretexts and eventually stopped responding, prompting the foreign firm to alert the Kanpur Police via email.
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Multiple European companies under lens
Preliminary findings suggest that the syndicate used the same modus operandi to target several European firms, with police tracing suspicious transactions worth nearly ₹1,000 crore. The funds were allegedly routed through multiple bank accounts to obscure the money trail.
Five detained, multi-state raids underway
An FIR has been registered at Panki police station naming Arvind Yadav and his associate Ramkumar Rai, a Mumbai resident. The Crime Branch has detained five suspects for questioning and launched raids across Uttar Pradesh, Bihar and West Bengal to track other members of the network.
Misuse of global trade platforms
Officials said the accused created fake profiles on international trade websites, projected themselves as legitimate exporters, and secured advance payments by offering bulk steel at discounted prices. No actual goods were shipped in most cases.
Shell firms and money trail under probe
Investigators are conducting forensic analysis of bank accounts, digital communications and company records to determine whether the firms involved had any real operations or existed only on paper. Authorities are also coordinating with banks and foreign entities to map the full financial trail.
Legal proceedings and wider implications
The probe is ongoing, and officials say more victims and higher fraud amounts may emerge as the investigation progresses. Experts note that the case highlights a growing pattern of cross-border trade fraud, where fake export contracts are used to obtain advance payments from overseas buyers without delivering goods.
Police said international cooperation will be sought if required to identify additional beneficiaries and recover funds.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
