Massive Fraud Uncovered in Kanpur: Conman Arrested with Ties to 1600 Crore Scam
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 man known as Pappu Chhuri. During the investigation, police traced the financial dealings of Mahfooz Ali, leading to the discovery of transactions worth 1600 crore over two and a half years. When summoned for questioning, he 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 misappropriation, involving serious allegations of hawala and GST evasion.
Modus Operandi of the Conman
Mahfooz Ali's approach was both simple and cunning. He targeted uneducated laborers, painters, and scrap dealers, using their PAN cards and identification 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. Both victims worked for Mahfooz Ali. As the police connected the dots, they uncovered the staggering 1600 crore in transactions linked to Mahfooz.
Fleeing to Kolkata
After being summoned for questioning, Mahfooz fled 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, he attempted to negotiate with informants for his safety. Eventually, he returned to Kanpur, where police apprehended him.
Massive Financial Transactions
Aarti, a local resident and laborer, was unknowingly involved in Mahfooz's schemes. He created a company in her name, Aarti Enterprises, which facilitated transactions worth around 100 crore. Similarly, fraudulent accounts were set up in the names of others, leading to transactions totaling hundreds of crores without their knowledge.
Investigative Findings
Police Commissioner Raghubir Lal reported that investigations revealed 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
The investigation is now examining potential links to terror funding. Agencies such as the Enforcement Directorate (ED), Income Tax Department (IT), and Reserve Bank of India (RBI) are collaborating with the police to unravel the entire network, with further revelations expected in the coming days.