Lucknow | The Enforcement Directorate (ED) has expanded its investigation into the high-profile GST scam linked to Kanpur by registering a case under the Prevention of Money Laundering Act (PMLA). The agency has sought details of the action taken so far by investigating authorities and has begun a detailed examination of the movable and immovable assets of those under scrutiny.
According to sources, the ED’s probe is centered on financial transactions through which large sums of money were allegedly transferred across multiple bank accounts. Investigators suspect that the network may have been used to disguise the origin of funds and project illicit money as legitimate. Banking records, account statements, financial documents and transaction trails are now being closely analyzed as part of the money laundering investigation.
FCRF’s Flagship Cyber Law Certification Returns With a New Four-Week Cohort
Preliminary findings indicate that more than 65 bank accounts spread across over a dozen banks were allegedly used to facilitate transactions worth approximately ₹1,600 crore during the past two and a half years. Authorities believe several of these transactions warrant closer scrutiny because of their scale, frequency and routing patterns. Investigators further claim that the broader network may have been involved in financial flows totaling nearly ₹3,200 crore.
The case is linked to the earlier arrest of Mahfooz Ali, who is accused of operating a network that allegedly transferred funds through multiple accounts on behalf of various businesses and commercial entities. Investigators allege that the arrangement enabled money to be routed through layers of banking transactions, making it difficult to identify the original source and final destination of the funds.
According to officials, the suspected network may have connections with business interests in several states, including Punjab, Gujarat, Delhi and Himachal Pradesh. Authorities are now attempting to determine the true origin of the funds, identify the beneficiaries of the transactions and establish whether the money was linked to tax evasion, undisclosed income or other financial irregularities.
The role of bank officials has also come under examination. Investigators are reviewing whether regulatory compliance procedures, reporting obligations and anti-money laundering safeguards were properly followed during the period in which the transactions took place. If evidence of negligence, regulatory violations or collusion emerges, further action could be initiated against individuals found responsible.
Financial crime specialists note that money laundering operations often rely on multiple accounts, intermediary entities and layered transactions to obscure fund trails. In such investigations, digital records, banking data, account-opening documents and transaction histories frequently become critical evidence in establishing the movement and ownership of funds.
The ED is currently coordinating with other agencies and matching financial information gathered from different sources. Investigators are also compiling details of properties and assets linked to persons under scrutiny. The agency is expected to examine whether any assets were acquired using proceeds from the alleged financial network and whether attachment proceedings may be warranted under applicable laws.
Officials maintain that the investigation remains at an active stage and that additional individuals, entities and beneficiaries connected to the suspected transactions may come under scrutiny as the probe progresses. With financial records and transaction trails still being examined, authorities believe further significant revelations could emerge in the coming weeks regarding the alleged ₹3,200 crore GST-related financial network.
