Massive Fraud Uncovered in Kanpur: Conman Arrested with Links to 1600 Crore Scam

In a shocking turn of events, Kanpur police have arrested Mahfooz Ali, known as Pappu Chhuri, who is linked to a staggering 1600 crore financial fraud. The investigation revealed a complex network of fake companies exploiting unsuspecting laborers' identities. With connections to serious crimes like GST evasion and hawala, this case has drawn the attention of multiple enforcement agencies. As the investigation unfolds, more revelations are expected, shedding light on the extent of this elaborate scam.

By Narendra Chaudhary May 9, 2026, 05:22 IST

Overview of the Fraud Case

On February 16, a robbery amounting to 24 lakh occurred near Shyam Nagar police station. The victims, Wasid and Arshad, were employed by a conman known as Pappu Chhuri. During the investigation, police traced financial transactions linked to Mahfooz, revealing a staggering 1600 crore in dealings over two and a half years. When summoned for questioning, Mahfooz fled.

Arrest of Mahfooz Ali

The Kanpur police have dismantled a gang involved in extensive fraud and financial crimes. The main suspect, Mahfooz Ali, also known as Pappu Chhuri, was apprehended in the Jajmau area. This case extends beyond mere financial misconduct, involving serious allegations of hawala and GST evasion.

Modus Operandi of the Con

Mahfooz's approach was both simple and cunning. He targeted uneducated laborers, painters, and scrap dealers, using their PAN cards and identity documents to establish fake companies. The mastermind behind this scheme is believed to be a lawyer named Firoz Khan, who facilitated the legal and technical setup of these fraudulent GST firms.

Details of the Robbery

On February 16, four individuals on two motorcycles robbed Wasid and Arshad of 24 lakh near Yashoda Nagar. Both victims worked for Mahfooz Alam, alias Pappu Chhuri. As police connected the dots, they uncovered Mahfooz's extensive financial dealings amounting to 1600 crore.

Fleeing to Kolkata

After being called in for questioning, Mahfooz escaped to Kolkata, where he sought refuge with a leader from the Trinamool Congress. Following the election results in West Bengal, which diminished the party's influence, Mahfooz attempted to negotiate with informants for his safety. Acting on a tip-off, police apprehended him upon his return to Kanpur.

Massive Transactions Linked to Fake Firms

Aarti, a local resident and laborer, was unaware that her identity was being exploited to create Aarti Enterprises, which facilitated transactions worth approximately 100 crore. Similarly, fraudulent transactions were conducted under the names of others, including Shah Nawaz and Ajay Shukla, totaling hundreds of crores without their knowledge.

Investigations Reveal Extensive Financial Network

Police Commissioner Raghubir Lal reported that investigations have uncovered over 3200 crore in transactions across more than 100 accounts in 16 banks. The case involves elements of slaughterhouses, GST fraud, and hawala operations. Authorities have also arrested Mahfooz's brother-in-law and son, who were presented in court and subsequently jailed.

Ongoing Investigations and Future Developments

The investigation is also exploring potential links to terror funding. Agencies such as the Enforcement Directorate (ED), Income Tax Department (IT), and Reserve Bank of India (RBI) are now involved in the case. As the investigation unfolds, further significant revelations are anticipated.