An international trade fraud has come to light after a Czech company alleged that it was duped of nearly ₹2 crore by a shell firm operating from Kanpur. The complaint triggered a cross-border investigation, exposing a network accused of creating fake companies to cheat foreign businesses through advance payments.
According to investigators, a company based in Frenštát pod Radhoštěm in the Czech Republic required steel racks. The accused floated a fake firm named “Vardhman Industries” in the Panki industrial area and struck a deal worth over ₹3 crore. The foreign company transferred nearly ₹2 crore as advance payment. Soon after receiving the funds, the accused allegedly withdrew the money and disappeared. The fraud surfaced when the Czech firm emailed a complaint to the Police Commissioner’s office on January 13, 2026. The matter was forwarded to the DCP West office and the cyber cell began its probe. Officials found that money from the Vardhman Industries account was moved to another account in Mumbai under the name “National Steel and Ferro Alloy Industries,” operated by Ramkumar Rai. The Vardhman account was linked to Arvind Yadav of Naubasta Pashupatinagar in Kanpur.
An FIR was registered at Panki police station against the account holders. Police arrested Amit Om Prakash Sharma of Sipri Colony, Jhansi and Akash Kumar of Naubasta Pashupatinagar and sent them to jail. The search for other members of the gang is ongoing. Sources said 2 suspects have been detained in Mumbai and may be brought to Kanpur for questioning. Cyber cell officials said the gang had been active for about 2 years, targeting firms in Poland, Australia, Norway and several African countries. For each deal, they created a new company, contacted businesses in metals, chemicals and pharmaceuticals and shared forged licences, tax records, excise details and invoices. Once payments were received, the firm was shut down and funds were routed through multiple bank accounts.
Investigators are now analysing transactions across all identified accounts and taking steps to freeze suspect funds. Authorities believe the number of victims may rise as more international firms come forward. Officials warned that advance payments based only on email negotiations carry high risks in cross-border trade. They stressed the need to verify GST details, import-export codes, company registration and physical existence before releasing funds. Police are working to identify the mastermind and coordinate with international agencies. More arrests and recovery proceedings are expected as the probe advances.
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