Bareilly: Police have arrested five people in connection with an alleged GST fraud network suspected of using fake firms, fabricated invoices and bogus input tax credit (ITC) transactions involving more than ₹100 crore.

The arrested accused have been identified as Sagar Agrawal, Furkan Hashmi, Vineet Arora, Anuj Agrawal and Shivam alias Lala. Investigators allege that the group created or operated firms with little or no genuine business activity and used them to generate invoices and route transactions for alleged tax and ITC manipulation.

Police are also looking for six other suspected members of the network who remain absconding.

Investigation Began With GST Complaint

The case originated from a complaint filed by GST officials at Kila police station in Bareilly last year over suspected tax evasion involving allegedly fraudulent firms.

During the initial investigation, police arrested Saddam Hussain and Mohammed Samad alias Shah Rukh. Subsequent questioning and examination of the financial trail reportedly helped investigators identify additional people allegedly connected with the network.

Authorities are now attempting to establish the full scale of the suspected operation and identify the ultimate beneficiaries of the transactions.

Suspect Allegedly Operated From Nepal

Investigators traced Furkan Hashmi, a resident of Bada Bazaar in the Kila area, who allegedly left India after the case was registered and travelled to Nepal.

Police said he was living there under the assumed identity of Sandeep and allegedly remained in contact with associates through a messaging application. Investigators allege that he continued assisting with the preparation of invoices linked to the suspected fraudulent firms.

According to police, information obtained during questioning helped investigators identify Sagar Agrawal as the alleged key operator of the network.

Fake Firms Allegedly Used to Generate Invoices

Police allege that Sagar Agrawal arranged firms that were subsequently used for transactions involving purportedly bogus ITC.

Investigators also identified the alleged involvement of Vineet Arora, Anuj Agrawal and Shivam alias Lala. According to police, the three allegedly operated from an office located opposite the DM compound, which investigators suspect was used to coordinate the network’s activities.

All four were subsequently arrested.

Residential Addresses Allegedly Used for Shell Firms

Investigators suspect that the syndicate recruited people willing to have firms registered in their names and at their residential addresses in return for payments.

According to police, Furkan allegedly told investigators that Vineet Arora encouraged him to establish a firm and paid him ₹50,000 for the arrangement. A firm called FS Traders was subsequently registered using Furkan’s residential address, police allege.

Authorities are now investigating how many similar firms were created and whether their registrations were used to generate invoices without genuine commercial activity.

Suspects Allegedly Had Different Roles

Police have attributed different responsibilities to the arrested individuals as part of their preliminary investigation.

According to investigators, Vineet Arora allegedly handled cash settlements, while Anuj Agrawal was responsible for filing GST returns associated with the firms under investigation.

Shivam alias Lala allegedly managed the movement of funds and helped transfer money through informal channels to beneficiary businesses and Sagar Agrawal.

Investigators are continuing to verify these alleged roles through financial records and digital evidence.

Six Suspected Members Still Absconding

Police have identified six additional suspects who are currently reported to be absconding. They are Syed Saif, Shajiz, Asif, Tausif, Firoz and Fammi alias Faraz.

Searches are underway to locate the suspects and determine their alleged involvement in the wider network.

Authorities are also examining whether other businesses and individuals may have benefited from transactions involving the suspected bogus ITC.

Electronic Devices Seized

Police have recovered a laptop, charger, mouse and six mobile phones from the arrested accused.

The devices are being examined for evidence relating to company registrations, invoices, bank accounts, communications and financial transactions. Investigators expect the digital examination to help establish links between the suspects and firms allegedly used in the scheme.

₹100 Crore Financial Trail Under Examination

A major focus of the investigation is the financial trail involving transactions valued at more than ₹100 crore.

Police are examining bank accounts and other financial records to determine how funds moved between the suspected firms, how much ITC was allegedly generated or transferred without genuine transactions and who ultimately benefited.

The investigation is also expected to establish the number of companies allegedly created for the scheme and whether legitimate businesses were knowingly or unknowingly involved.

The five arrested individuals are accused in the case, and the allegations remain subject to investigation and legal proceedings. With several suspects still at large and the financial trail continuing to be examined, police are expected to take further action as additional evidence emerges.

New Delhi: India’s cybercrime response system has helped prevent financial losses of more than ₹11,158 crore across over 32.80 lakh reported cyber fraud complaints, according to figures presented by the government in Parliament.

The data, shared by Union Minister of State for Home Affairs Bandi Sanjay Kumar in a written Lok Sabha reply, highlights the government’s expanding efforts to disrupt digital fraud through rapid reporting, financial monitoring, mobile-network action and app blocking.

As part of the broader crackdown, authorities have also blocked 3,718 mobile applications, including apps allegedly involved in fraudulent lending and other forms of digital fraud.

Faster Reporting Can Help Stop Fraudulent Payments

The National Cyber Crime Reporting Portal (NCRP) provides citizens with a platform to report cyber offences, including crimes involving financial fraud.

For cases involving fraudulent financial transfers, the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) has been operational since 2021. The mechanism enables reported cases to be quickly shared with relevant banks and financial institutions.

The objective is to intervene before fraudulently obtained money can be transferred through additional accounts, making immediate reporting particularly important in financial cybercrime cases.

Suspect Registry Targets Mule Accounts

The Indian Cyber Crime Coordination Centre (I4C) has also strengthened its financial intelligence capabilities through the Suspect Registry, introduced in September 2024 in collaboration with banks and financial institutions.

Government figures show that the registry has received more than 30.48 lakh suspect identifiers. Authorities have also shared information on more than 32.08 lakh Layer-1 mule accounts with participating financial institutions.

According to the government, these measures have contributed to the rejection of transactions valued at approximately ₹25,698 crore.

Mule accounts are frequently used to receive and move money obtained through cyber fraud. Identifying such accounts can help financial institutions flag suspicious transactions and assist investigators in following the money trail.

Over 15 Lakh SIM Cards and 5 Lakh IMEIs Blocked

Authorities have also taken action against mobile connections and devices reportedly linked to cybercrime.

More than 15.75 lakh SIM cards and 5.77 lakh IMEIs identified by police authorities have been blocked, according to the government data.

The measures are intended to prevent reported mobile numbers from being used for further fraudulent calls or messages. Blocking reported device identifiers can similarly restrict the reuse of devices associated with cybercrime.

Government Blocks 3,718 Suspicious Apps

Mobile applications have also become a major focus of the government’s cybercrime enforcement efforts.

As of June 30, 2026, authorities had blocked 3,718 mobile applications under applicable provisions of the Information Technology Act, 2000.

The blocked apps include fraudulent loan applications, which can expose users to financial losses and misuse of personal or financial information.

Sahyog Portal Strengthens Coordination

The government has also introduced the Sahyog portal to improve coordination with technology intermediaries. The platform is designed to facilitate notices seeking the removal or disabling of access to online information, data or communication links allegedly being used for unlawful purposes.

In addition, the Money Restoration Module and Grievance Redressal Module became operational in April 2026. These mechanisms are intended to support efforts to recover defrauded funds and address complaints involving frozen accounts or lien-marked amounts.

Multi-Layered Approach to Cyber Fraud

The latest figures indicate that India’s approach to combating cybercrime increasingly combines several intervention points: rapid victim reporting, banking-system monitoring, identification of mule accounts, blocking of suspicious mobile connections and devices, removal of fraudulent applications and coordination with online platforms.

For victims of financial cyber fraud, the speed of reporting remains critical because early intervention can improve the chances of stopping or tracing funds before they move through multiple accounts.

The government is continuing to expand these systems as digital fraud becomes increasingly sophisticated and cybercriminal networks adopt new methods to target individuals and businesses.

Police in Gujarat have registered a criminal case against directors and senior officials of Ahmedabad-based Unique Mercantile India Limited for allegedly cheating investors through fixed deposit and monthly income schemes promising high returns.

The company, operating from Popular House in Navrangpura, allegedly collected investments by assuring attractive payouts but later stopped interest payments, closed its office, and failed to repay maturity amounts totaling ₹14.83 lakh, according to the complaint filed with police.

Investor Complaint Triggers Police Investigation

The case was initiated after a complaint by Vishnubhai Bholidas Patel, a 58-year-old resident of Kalol in Gandhinagar district.

According to the FIR, Patel was introduced to Unique Mercantile India Limited in 2017 through company representatives Sanjay Patel and Rajesh Patel. The agents allegedly promoted fixed-term deposit plans and monthly income schemes with assured returns.

Patel later joined the company as an agent and helped attract additional investors after attending promotional meetings conducted by company representatives. He invested his own money and encouraged relatives and acquaintances to participate in the schemes.

Between 2017 and 2018, Patel allegedly mobilized investments worth ₹11.65 lakh, with the company’s promised maturity liability reaching ₹15.93 lakh.

The FIR names company directors Utkarsh Rai, Rahul Rai, and Raj Kumar Rai, along with managers Mukeshbhai Patel and Ghanshyambhai Patel, alleging that they misrepresented the investment plans and failed to meet repayment commitments.

Interest Payments Stopped After Initial Trust-Building

The complaint alleges that the company initially made periodic interest payments and provided commissions to agents, helping build confidence among investors.

However, payments reportedly stopped around 2020. When investors approached the company’s Navrangpura office, officials allegedly cited financial difficulties linked to the Covid-19 pandemic and assured them that pending dues would be cleared.

The company later shut down operations without fully settling investor claims. Police records indicate that only ₹1.10 lakh was repaid through installments, leaving an outstanding amount of ₹14.83 lakh.

Police Probe Financial Records

Ahmedabad Police have registered the case under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) related to cheating and criminal breach of trust.

Investigators are examining financial documents, bank records, and other evidence to determine the complete scale of the alleged irregularities and identify whether additional investors were affected.

Experts Warn Against Unverified High-Return Schemes

Financial fraud experts have repeatedly warned investors about schemes offering unusually high or guaranteed returns without proper regulatory oversight.

Experts advise investors to verify whether investment companies are registered with appropriate authorities such as the Securities and Exchange Board of India (SEBI) or the Reserve Bank of India (RBI) before committing funds.

Authorities have also urged people to be cautious of investment opportunities promoted through aggressive marketing, commission-based networks, and promises of risk-free profits.