Kanpur. Investigators probing the ₹3,200 crore suspicious GST transaction case in Kanpur have uncovered an alleged multi-state financial network involving fake firms, forged documents and layered banking transactions. Authorities suspect that companies were opened in the names of relatives, drivers and economically weak individuals to route large sums of money before cash withdrawals were made through linked accounts.
Fake Firms Registered in Names of Unaware Individuals
According to investigators, the network allegedly operated by creating firms in the names of relatives, acquaintances, drivers and poor individuals. In several cases, police claim, people were unaware that companies had been registered using their identities.
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Authorities allege that crores of rupees were transferred through these entities before being withdrawn in cash. Investigators said many firms were registered using addresses and photographs that had no connection to actual business activity.
A firm named Kartik Traders was allegedly registered in the name of a driver, Dilip Tiwari. Similar entities were reportedly used for transactions linked to scrap dealers, tannery operators and slaughterhouse businesses.
GST Lawyer and Business Operators Under Scanner
During questioning, arrested accused Mahfooz Ali alias Pappu Chhuri reportedly named GST lawyer Firoz Khan. Investigators suspect that several fake firms were registered through a network allegedly managed by Khan, who is now being searched as a key figure in the case.
Agencies are examining transactions involving several business operators and firms, including scrap traders Noor Alam, Sanjeev Dixit, Sheebu and Rizwan. Firms such as Bakhsh Enterprises, Ajmeri Traders, Rustam Traders, Alana Traders, Mass Enterprises and SM Agro are also under scrutiny.
Authorities are also reviewing transactions linked to Ravi Enterprises, Kartik Traders, Classic Enterprises, Vaidika Enterprises, Jenko Enterprises and Radharani Enterprises. Notices have been issued to multiple individuals seeking explanations about the transactions.
Banking Channels and Forged Certificates Examined
The role of some bank employees and individuals connected to the GST system has also come under investigation. Officials found that APMC certificates used for opening bank accounts were allegedly forged. Authorities at the mandi secretary level reportedly confirmed that some certificates appeared fake.
Bank employees claimed the documents were supplied by Mahfooz, while Mahfooz allegedly told investigators that bank staff had advised him about the certificates and helped arrange them. During a face-to-face interaction with a bank employee, Mahfooz allegedly referred to a payment of ₹1.50 lakh, prompting investigators to intensify scrutiny of account approval and verification processes.
Police teams have also been sent to Himachal Pradesh, Delhi and Punjab. Preliminary findings reportedly showed that one firm in Himachal Pradesh appeared genuine, while several companies linked to Delhi and Punjab were allegedly fake.
Investigators are continuing searches for absconding suspects and expect more financial links, firms and individuals connected to the alleged GST fraud network to emerge as the probe progresses.
