A team from the Kanpur division of the Income Tax Department dismantled a network where transactions of several crores were being made from the accounts of rickshaw drivers and others who pick up trash for the purpose of evading GST or income tax.
The brains behind the nexus, according to sources in the Income Tax department, are located in Kanpur’s Bhusa Toli neighbourhood, which is well-known for its sizable junk market.
The accused founded a number of businesses under the identities of many junk dealers and rickshaw pullers. By employing invented addresses, these fictional entities were used to open bank accounts. The accused lured unwary people into giving them their signatures, chequebooks, bank account information, and even ATM cards by promising them a monthly payment of Rs 10,000. Their bank accounts were credited with payments, which they then withdrew using checks.
The accused engaged in transactions totaling more than Rs 250 crore and stole more than Rs 80 crore from the agencies. Amit Kashyap, Somal Tiwari, Safal Singh, and Pradeep, who are employed as scrap collectors, alerted the GST and Income Tax Department about the situation. Notices were subsequently sent to these firms.
A senior income tax official declared he would write to the RBI about the issue and advise questioning bank employees about how the accounts were opened without conducting adequate background checks.
Further research is being done.
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