Kanpur: Panki police and the West Zone cyber cell have busted an international fraud racket that duped foreign entrepreneurs through shell firms, arresting two accused and uncovering financial transactions across 40 bank accounts. The gang allegedly targeted companies in multiple countries, posing as legitimate suppliers and siphoning off crores of rupees. A car, ATM cards, passbooks, cheque books and forged agreements were recovered from the accused.
Czech Complaint Triggers International Probe
According to investigators, a company based in Frenštát pod Radhoštěm in the Czech Republic required steel racks. The gang floated a fake entity, “Vardhman Industries,” in the Panki industrial area and entered into a deal worth over ₹3 crore. The foreign firm transferred nearly ₹2 crore as an advance, after which the accused withdrew the funds and vanished.
The fraud came to light when the Czech firm emailed a complaint to the Police Commissioner’s office on January 13, 2026. The case was forwarded to the DCP West office, and the cyber cell launched an inquiry. The probe revealed that funds received in the Vardhman Industries account were transferred to another account in Mumbai under the name “National Steel and Ferro Alloy Industries,” operated by Ramkumar Rai. The Vardhman account was linked to Arvind Yadav of Naubasta Pashupatinagar in Kanpur.
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Arrests and Expanding Investigation
An FIR had been registered at Panki police station against the account holders. Police arrested Amit Om Prakash Sharma of Sipri Colony, Jhansi, and Akash Kumar of Naubasta Pashupatinagar and sent them to jail. The search for other gang members is ongoing. Police sources said two suspects have been detained in Mumbai and are likely to be brought to Kanpur for further questioning.
Forged Documents and Cross-Border Targeting
Cyber cell officials said the gang had been active for about two years, targeting entrepreneurs in Poland, Australia, Norway and several African countries. For each deal, the accused created a new firm and contacted companies dealing in metals, chemicals and pharmaceuticals via email. They shared forged licences, tax documents, excise details and invoices to establish credibility. Once payments were received, the firm was shut down and funds were layered through multiple accounts.
Investigators are analysing transactions across all identified bank accounts and initiating steps to freeze suspect funds. Efforts are also underway to trace the money trail and identify additional beneficiaries. Authorities believe the scale of the fraud and the number of victims may increase as more international firms come forward.
Wider Concerns Over Trade Verification
Officials cautioned that advance payments based solely on email negotiations pose a high risk in cross-border trade. Verification of GST credentials, import-export codes, corporate registration and physical existence of suppliers is essential before releasing funds.
Police are working to identify the mastermind, compile data on other victim companies and coordinate with international agencies to dismantle the network. Further arrests and financial recovery proceedings are expected as the investigation progresses.
