Bareilly police bust hawala, GST fraud racket; 2 held

The Bareilly police have busted a suspected hawala and GST fraud network involving illegal financial transactions worth around ₹24 crore, with the arrest of two men who allegedly used fake firms and so-called “mule accounts” to move money, officers said on Tuesday.

“The racket came to light after a smallembroidery artisan received an income tax notice amounting to nearly ₹1.5 crore for transactions he was not aware of. The accused targeted small traders and daily wage workers, promising assistance in expanding their businesses,” said Anshika Verma, Bareilly Superintendent of Police (South).

The accused allegedly acquired documents such as Aadhaar and PAN cards, opened bank accounts in the names of these individuals, and established shell companies, which were subsequently utilised for extensive unauthorised transactions, said the police. “About ₹24 crore in suspicious transactions were routed through this firm within a year,” he said.