In a significant crackdown on financial crime, the Bareilly police have successfully dismantled a sophisticated racket involved in Goods and Services Tax (GST) fraud and hawala transactions worth a staggering Rs 24 crore. The operation led to the arrest of two key individuals accused of orchestrating this elaborate scam.
Unraveling the Multi-Crore Scam
The investigation was spearheaded by the Bareilly police's Special Operation Group (SOG), acting on precise intelligence. The bust targeted a network that was allegedly generating fake invoices and facilitating illegal hawala transfers under the guise of legitimate business. The primary accused have been identified as Mohammad Rashid, a resident of Delhi, and Mohammad Kaif, from Bareilly.
According to police officials, the racket operated by creating a web of shell firms or bogus companies. These entities existed only on paper and were used to issue fraudulent bills and invoices without any actual movement of goods or services. The fake invoices were then used to illegally claim Input Tax Credit (ITC) under the GST regime, causing massive revenue loss to the government exchequer.
Hawala Link and Modus Operandi
Beyond the GST fraud, the network had a deeply entrenched hawala connection. Hawala is an informal and illegal method of transferring money without any physical movement of cash. Investigators revealed that the proceeds from the fake billing scheme were funneled through this parallel hawala network.
The modus operandi was complex. The accused would allegedly use the details of unsuspecting individuals to open bank accounts for their shell firms. Through these accounts, they would rotate money and create a paper trail to make the transactions appear genuine. The Rs 24 crore figure represents the estimated volume of fraudulent financial transactions conducted through this racket.
Ongoing Investigation and Wider Implications
The arrests mark a crucial breakthrough, but the investigation is far from over. Police are now digging deeper to uncover the entire chain of operatives, identify more shell companies involved, and trace the ultimate beneficiaries of the illicit funds. They are also examining the possibility of the racket having connections beyond Bareilly and Uttar Pradesh.
This case highlights the serious challenge of tax evasion and financial fraud that authorities face. The use of technology and coordinated intelligence is becoming vital to track such sophisticated operations that exploit loopholes in the taxation system. The Bareilly police's action sends a strong message against such economic offenses.
The two arrested accused were presented before a local court, which has sent them to judicial custody. The police are likely to expand their probe in collaboration with the GST department to assess the exact quantum of tax loss and to identify other entities complicit in the fraud.
