UP: IT Raids On Meat Traders Uncover ₹1,200 Crore Cash Discrepancy

A recent confidential report from the Income Tax Department has revealed shocking irregularities and potential security risks following raids on several meat trading firms across Uttar Pradesh.

The report highlights that Rs 1200 crore in cash transactions remain unaccounted for, with investigators unable to determine where this enormous sum was spent. The report also notes a concerning reliance on private security agencies from Kashmir, suggesting that these arrangements could pose a national security threat and warrant an urgent high-level investigation.

The raids, which targeted prominent companies including Maria Group, Rahbar Group, Al-Sumama Group of Bareilly, Rustam Group of Lucknow and Unnao, and HMA Group of Agra in December 2022, uncovered substantial evidence of financial mismanagement and possible money laundering. After nearly a year of examining the documents and transactions, officials identified that meat trader.

Praveen Rastogi from Sambhal funneled Rs 524 crore in cash to these firms through money laundering channels. Additionally, undisclosed cash holdings of Rs 68 crore were found with the Rahbar Group, along with Rs 535 crore in bogus sales by Rustam Group and Rs 102 crore by Maria Group.

The report raises concerns that the missing Rs 1200 crore may have been channeled into suspicious activities. Notably, many of these companies have contracted private security agencies from sensitive regions such as Jammu and Kashmir, with numerous Kashmiri youth employed as guards. This, combined with the massive cash flows, suggests a possible conspiracy. Further, evidence pointed to other meat traders relying on similar private security firms from Kashmir, prompting the Income Tax Department to investigate these agencies and uncover large-scale irregularities.

The report specifically mentions that Kashmiri personnel are stationed at the factories and residences of these meat traders, casting further doubt on their operations. A portion of the funds was allegedly directed toward organizations like Jamaat-e-Ulema Hind and Deoband, intensifying concerns about the funds’ end-use.

Additionally, HMA Agro of Agra, which exports buffalo meat to 40 countries, reportedly employs an Arabic translator who maintains regular contact with individuals in the Gulf, adding an international dimension to the investigation. HMA Agro is directed by former BSP MLA Zulfiqar Ahmad Bhutto, whose role may come under scrutiny as the investigation progresses.

The report highlights several security firms associated with the meat traders including Khan Security Protection of Rajouri, whose workforce mainly comprises Kashmiri youth, has been engaged by Maria, Rustam, and Rastogi groups.

Then there is Jaffran Chaudhary Security Private Limited, Hindustan Guard Force Security Services, Subhana Chaudhary Security Services, and Asia Group Security were employed by HMA Group in Agra. Hindustan Guard’s owner, Zafar Iqbal, and Subhana Chaudhary Security’s owner, Abid Ali, both have offices in Poonch, a region known for security sensitivities.

“The Income Tax Department’s revelations have prompted calls for an immediate investigation to ascertain whether these funds and security arrangements have potential links to anti-national activities. This ongoing probe could have significant ramifications for both the meat export industry and regional security protocols,” a senior official said.