Cops unearth Rs 155 crore fraud, probe exposes web of fronts and genuine identities

Nagpur: Police have unearthed a Rs 155 crore fraud where a group of businessmen in Nagpur allegedly registered fake companies using the genuine identities of unsuspecting persons and routed black money through Hawala transactions, leading to the arrest of four individuals.

An official said the scale of the fraud could be much higher as the accused had prima facie formed 50 to 60 bogus companies to commit suspicious transactions.

Shockingly, the accused used genuine identities of needy people from various states for the criminal activity.

The lid on the fraud, allegedly being conducted since August 2024, was blown after a victim whose identity was used by fraudsters to register a fake company approached the police.

An FIR was registered at Lakadganj police station under various sections of the Bharatiya Nyay Samhita (BNS).

The complainant Biswajit Roy, originally from West Bengal, used to run a food stall. He migrated to Nagpur following a financial crunch in June 2024 after his father's demise.

He subsequently found himself trapped in a shocking web of financial crime.

Roy's friend Suraj alias Pritam Kedia introduced him to 'businessmen' Bunty Shahu, Jayesh Shahu, Avinash Shahu, Rishi Lakhani, Anand Harde, Rajesh Shahu, Brijkishore Manihar and Anshul Mishra, said officials.

The accused proposed to invest money in the market in Roy's name and promised a monthly profit share.

"Desperate for work, Roy agreed and submitted his Aadhaar and PAN cards. He was also made to sign several documents. Later, he was accommodated in a warehouse owned by Rajesh Shahu in the Wathoda area," an official said.

On August 3, 2024, Avinash Shahu procured a SIM card in Roy's name but kept it with himself. He cited OTP verification and gave Rs 25,000 to Roy as an initial "profit" share.

The accused used Roy's identity to register a company as a small-scale industrial unit with a valid GST number. They opened two accounts for this firm, officials added.

"The accused allegedly generated fake invoices for goods without conducting actual transactions. After receiving payments from various businesses, they would withdraw the amount and return it in cash, creating an illusion of legitimate business activity," the official said.

Between September 9 and December 30, 2024, transactions worth Rs 96.39 crore were made.

Similarly, Avadh Enterprises was created by the accused persons using the identity of Mithun Raju Rajpande. Fraudulent transactions of Rs 59.51 crore were conducted through this firm.

After Roy realised his name was used in illegal transactions, he asked the accused to stop the transactions. However, the accused threatened him with dire consequences and warned him to remain silent, police said.

After Roy lodged an FIR, DCP (Detection) Rahul Maknikar ordered a probe.

The Crime Branch officials initiated a preliminary investigation which confirmed the allegations and exposed the massive fraud.

The four arrested accused are identified as Bunty Shahu, Jayesh Shahu, Rishi Lakhani and Brijkishore Manihar.

According to police, this is just the tip of the iceberg. It is estimated that the accused may have registered 60 to 70 such fake companies, and the total scale of the scam could exceed thousands of crores once all entities are thoroughly investigated.

Police are investigating the scope of the network and trying to identify accomplices of the accused in banking or administrative systems.

"We have initiated procedures to trace financial trails and seal the accounts involved," an official added.