Kanpur: Police in Kanpur have busted an international fraud racket that allegedly duped foreign companies through shell firms, arresting two accused and uncovering financial transactions across nearly 40 bank accounts. The gang is suspected of posing as legitimate industrial suppliers and siphoning off crores of rupees from overseas clients.
The operation was carried out by Panki police along with the West Zone cyber cell. During the crackdown, officials recovered a car, multiple ATM cards, passbooks, cheque books and forged business agreements.
Czech Complaint Triggers International Probe
The case came to light after a company based in Frenštát pod Radhoštěm in the Czech Republic reported being cheated in a business deal. According to investigators, the foreign firm required steel racks and entered into an agreement worth over ₹3 crore with a purported Kanpur-based entity named “Vardhman Industries,” operating from the Panki industrial area.
The Czech company transferred nearly ₹2 crore as an advance payment. Soon after receiving the funds, the accused allegedly withdrew the money and ceased communication.
A formal complaint was emailed to the office of the Police Commissioner on January 13, 2026, prompting the matter to be forwarded to the Deputy Commissioner of Police (West). The cyber cell’s probe revealed that funds credited to the Vardhman Industries account were subsequently transferred to another account in Mumbai under the name “National Steel and Ferro Alloy Industries,” allegedly operated by Ramkumar Rai. The Vardhman account was linked to Arvind Yadav of Naubasta Pashupatinagar in Kanpur.
Arrests and Expanding Investigation
An FIR was registered at Panki Police Station against the account holders. Police arrested Amit Om Prakash Sharma, a resident of Sipri Colony in Jhansi, and Akash Kumar of Naubasta Pashupatinagar, Kanpur. Both have been sent to judicial custody.
Police sources said the search for other members of the racket is ongoing. Two suspects have reportedly been detained in Mumbai and may be brought to Kanpur for further interrogation.
Forged Documents and Cross-Border Targeting
Cyber cell officials said the gang had been active for nearly two years, targeting entrepreneurs in countries including Poland, Australia, Norway and several African nations. For each transaction, the accused allegedly floated a new firm and approached companies dealing in metals, chemicals and pharmaceuticals via email.
Investigators said forged licences, tax registrations, excise documents and invoices were shared to establish credibility. After receiving advance payments, the shell entities were shut down and funds were layered through multiple bank accounts to obscure the money trail.
Authorities are now analysing transactions across all identified accounts and initiating steps to freeze suspicious funds. Efforts are underway to trace beneficiaries and identify additional victims, with officials indicating that the scale of the fraud could expand as more complaints emerge.
Wider Concerns Over Trade Verification
Police officials cautioned that cross-border trade based solely on email communication and advance payments carries significant risk. They emphasized the need for thorough verification of GST credentials, import-export codes, corporate registrations and the physical existence of suppliers before releasing funds.
Investigators are working to identify the alleged mastermind, compile details of other affected firms and coordinate with international agencies to dismantle the network. Further arrests and financial recovery proceedings are expected as the probe progresses.
