Mehfooz Ali arrested in Kanpur over ₹3,200-crore fake firms and hawala network

More than 100 bank accounts across 16 banks are under scrutiny as the investigation continues.

Police indicated the network has links to Delhi, Punjab, Himachal Pradesh and West Bengal; agencies including the Enforcement Directorate, the Income Tax Department and the Reserve Bank of India may join; a possible terror-funding angle is being examined.

Mehfooz Ali alias Pappu Chhuri, the suspected mastermind, was arrested by a joint team of Chakeri police, cyber cell and surveillance units in Kanpur.

Painter Nikhil Kumar filed a complaint alleging a fake SIM card and GST registration were issued in his name to create Ravi Enterprises; transactions worth ₹7.75 crore allegedly passed through the account in six months.

In one instance, a woman earning daily wages found nearly ₹100 crore routed through a company registered in her name; in another case, a scrap dealer's documents were used for ₹21 crore in transactions.

Labourers, painters, scrap workers and daily wage earners were reportedly used as fronts for the fake firms without their knowledge.

Investigators identified several shell firms—Ravi Enterprises, Maa Vindhyavasini Enterprises, Aarti Enterprises, Raja Enterprises and Afifa Enterprises—as part of the alleged network; one case involved around ₹146 crore in transactions.

Two cash carriers were robbed by motorcycle-borne assailants in Shyam Nagar. No FIR was lodged initially, but police took suo motu cognisance and later arrested six accused while recovering nearly ₹11 lakh in cash.

Police uncovered a large network of shell companies linked to Mehfooz Ali, used to forge documents, obtain GST registrations and open bank accounts across multiple states. Police suspect the robbery victims were carrying cash on his behalf.