Nagpur: What began as a Rs 155 crore bogus firm scam in Nagpur has now exploded into a sprawling Rs 800 crore financial scandal, with the Crime Branch uncovering a sophisticated network of 86 shell companies involved in illegal transactions — and the sum could climb even higher.
Investigators believe the cartel behind the scam may have laundered money generated from cricket betting and online gaming through these fake firms over two years. Police are now coordinating with the GST department and other agencies, with the investigation expected to stretch to Pune as the trail expands.
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20 May 2025
On Thursday, Nagpur police made a compelling case before the magistrate court, securing an extension of custody for prime accused Bunty Shahu and Jayesh Shahu till May 27. Officials revealed the duo used a network of over 10 bank accounts to funnel betting proceeds, while an additional 17 accounts were traced to Bunty’s family members.
Two chartered accountants allegedly associated with the racket were grilled on Thursday to determine their involvement. Meanwhile, the manhunt is on for a key bookie, Govind Tanna, and a financier named Riyaz Ali — suspected of routing crores through online gambling platforms and shell entities.
Crime branch officers say several fake firms had office boys running the show. “These employees were issued cheque books, ATM cards, SIM cards for OTPs, and were trained to fabricate receipts, ledgers, invoices, and transport bills. Everything was staged to look legitimate,” an investigator told a local newspaper.
At least four transport companies have now come under the scanner for their alleged role in enabling bogus billing to justify illegal transactions.
Two other accused — Rishi Lakhani and Arun Harde — were remanded to magisterial custody and sent to Nagpur Central Jail. According to police, Lakhani handled hawala operations for the cartel, while Harde funneled money via the Smart City Credit Cooperative Bank — a cooperative lending institution that could now face deeper scrutiny.
Another accused, GST consultant Brijkishor Maniyar, was granted bail on medical grounds.
The investigation, supervised by DCP (Crime) Rahul Maknikar and ACP Abhijeet Patil, is being led by Senior Inspector Kamlakar Gaddime. So far, police teams have raided 12 locations, seizing crucial digital and documentary evidence.
“We are sifting through account books, transaction logs, and other digital trails. Many of the fake firms existed only on paper. It’s a textbook case of financial camouflage,” said an official involved in the probe.
More arrests are expected as police chase down absconding suspects including Rajesh Shahu, Anshul Mishra, and Avinash Shahu — believed to be core members of the cartel’s inner circle.
As the investigation deepens, Nagpur’s financial underbelly is being laid bare — revealing a web of fraud, gambling, and laundering masked behind the façade of legitimate business.
