A team of the Income tax department, Kanpur division, unravelled a nexus where transactions worth several crores were being done from the accounts of junk pickers and rickshaw pullers for GST or income tax evasion.
According to Income Tax department sources, the mastermind of the nexus works in the Bhusa Toli area in Kanpur, known for its extensive junk market.
The accused established several firms in the names of hundreds of junk dealers and rickshaw pullers. These fictitious entities were used to open bank accounts using fabricated addresses. The accused obtained signatures, cheque books, and even bank details and ATM cards from unsuspecting individuals, promising them a monthly payment of Rs 10,000. Payments were deposited into their bank accounts and subsequently withdrawn through cheques.
The accused made transactions worth more than Rs 250 crore and defrauded the agencies of more than Rs 80 crore.
The matter came to light when Amit Kashyap, Somal Tiwari, Safal Singh and Pradeep, who work as scrap collectors, informed the GST and Income Tax Department. Subsequently, notices were issued to these firms.
A senior Income Tax official said that he would write to the RBI on the matter and would also recommend questioning the bank officials on how the bank accounts were opened without proper background check.
Further investigations are on.
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