ITC Fraud Network Exposed in Kanpur: Multi-Crore Scam Unveiled
Massive Tax Fraud Scheme Uncovered in Kanpur, India
A massive tax fraud scheme has been uncovered in Kanpur, India, where a network of fake companies was used to illicitly claim input tax credit (ITC) benefits worth hundreds of millions of rupees.
Modus Operandi
The Cyber Crime Branch investigation found that the gang had collected sensitive documents, including Aadhaar, bank, and land records, from over 100 individuals in Kanpur and Unnao.
Using these documents, the group allegedly created 38 fake firms, with bank accounts linked to nine of these companies showing transactions totaling nearly ₹250 crore.
The remaining 29 firms are currently being investigated, and four private banks have been requested to provide transaction records.
How the Gang Operated
The gang operated in a highly organized manner, collecting documents from victims by promising them jobs or loan facilitation.
The documents were then used to create fake companies and open bank accounts.
One victim, Ratna Saxena, reported that her documents were taken by Kapil Mishra and Amardeep from Unnao in January 2026 on the pretext of arranging a loan.
A bank account was later opened in her name at a private bank branch in Govind Nagar, linked to a firm named Rudra Enterprises, which showed several suspicious transactions.
Key Findings
Another firm, Parvati Enterprises, was also discovered during the investigation, with around ₹117 crore transacted through its account.
Police suspect that this firm may be one of the main entities in the network.
The account holder, Ujjwal from Unnao, claimed he was unaware of any firm operation and had submitted his documents for a loan application.
Arrests and Investigation
The Cyber Crime Branch has arrested Kapil Mishra and Raj alias Amardeep from Unnao, and several other suspects have been identified, including Rishabh Shukla, Pratham, Rishabh Pandey, Rishabh Patel, Rajat, and Sahil.
Many members of the gang were associated with marketing activities and were frequently seen near bank branches.
Around 30 mobile phones were recovered from the accused, and investigators suspect that the gang had planned to create nearly 50 fake firms, some of which were still in the process of being set up.
Approximately ₹1.5 crore deposited in accounts of Rudra Enterprises, Parvati Enterprises, and other firms has been frozen.
Expert Advice
Cybercrime experts emphasize the importance of protecting personal documents and maintaining financial awareness to prevent such scams.