BAREILLY. Police in the Shahi area of Bareilly have busted a major organised hawala and fraud syndicate that allegedly operated through fake companies and multiple bank accounts to route illicit funds worth crores of rupees across different states. The network, investigators say, functioned under the guise of a call centre and may also have been involved in cyber fraud and IPL betting activities.
Three Accused Arrested
Authorities have arrested three accused identified as Jitendra Kumar, Sainik Colony, Baradari, Himanshu Patel, Bithri Chainpur, and Asif, Adhkata Rabbani Begum village, Nawabganj. Several others, including alleged masterminds Sagar, Fazil, and Vishal Patel, remain absconding, with police teams conducting raids to trace them.
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During the investigation, police uncovered that the syndicate had created two shell companies named ‘Kumar Energy Enterprises’ and ‘Shubham Manglam’ to facilitate the movement of illicit funds. These entities were used to channel large volumes of money through bank accounts opened under their names. Preliminary findings indicate transactions worth nearly ₹14 crore during September 2025 alone.
Funds Routed Across States
A key breakthrough came when investigators traced ₹88 lakh routed through the ‘Kumar Energy’ account to a firm in Kerala. The funds were subsequently withdrawn in cash through banking channels in the Punalur area of Kollam district. Similarly, money received in the ‘Shubham Manglam’ account was transferred to Tamil Nadu, where it was also withdrawn in cash. Officials believe this pattern was designed to launder money and obscure the financial trail.
Police have also flagged possible irregularities within the banking system. The accounts involved were reportedly opened at a bank branch in the Civil Lines area of Bareilly. Investigators suspect that due monitoring mechanisms and mandatory reporting of suspicious transactions were not properly enforced, allowing the network to operate unchecked for an extended period.
Banking Role Under Scrutiny
Officials are now examining whether any bank employees or management personnel played a role in facilitating or overlooking these transactions. Documents and account records are being scrutinised as part of the ongoing probe.
Interrogation of the arrested accused has revealed that the network operated in a structured manner, with different individuals assigned specific roles ranging from setting up fake companies to managing accounts and executing fund transfers. Initial inputs also suggest the involvement of a call-centre-based setup used to deceive victims and carry out fraudulent activities.
Wider Network Being Traced
Police sources said that further arrests are likely once the absconding accused are apprehended. The investigation also indicates that the racket may have interstate linkages, with operations potentially extending beyond Uttar Pradesh.
A senior investigating officer stated that the manner in which funds were routed through multiple corporate entities and bank accounts points to a well-planned hawala model. Authorities are now conducting forensic analysis of digital records and financial transactions to map the full extent of the network.
The arrested individuals have been sent to judicial custody, while search operations for the remaining accused have been intensified. Investigators are also working to determine the total volume of money circulated through the network and identify all associated beneficiaries across different states.
