In a major enforcement action in Western Uttar Pradesh, the Enforcement Directorate (ED) carried out extensive searches targeting former MLA Shahnawaz Rana across nine properties. The central probe agency conducted operations across Muzaffarnagar, Ghaziabad, and Faridabad, leading to the recovery of Rs 3.6 crore in unaccounted cash stuffed inside suitcases and bags. Following the search operations in connection with an illegal Input Tax Credit (ITC) network, all targeted premises were sealed by the officials.
Cash Recovery and Seizure of Incriminating Digital Evidence
The searches were initiated on Monday by the Lucknow Zonal Office of the ED. Investigators focused heavily on 'New Rana House' in Muzaffarnagar and the business premises of 'Sudha Steel' in Ghaziabad. According to official findings, more than Rs 3 crore out of the total seized amount was recovered directly from the Muzaffarnagar residence and the Ghaziabad firm. Beyond the physical currency, search teams confiscated crucial documents, transaction records, and digital evidence linked to the fraudulent operations.
Modus Operandi of the Input Tax Credit Fraud
The agency launched its money laundering investigation after uncovering a systematic mechanism designed to defraud the government exchequer. The syndicate allegedly generated fake invoices and bills to claim bogus Input Tax Credit without any physical movement of goods. Detailed scrutiny revealed extensive circular trading, rapid layering of funds across multiple bank accounts, and cash withdrawals using shell entities. These activities resulted in substantial revenue losses to the public exchequer, prompting the ED to register a case under financial crime statutes.
Political Background and Previous Legal Troubles
Shahnawaz Rana is a prominent political figure in Western Uttar Pradesh. He was elected as an MLA on a Bahujan Samaj Party (BSP) ticket before later aligning with the Rashtriya Lok Dal (RLD). Subsequently, in November 2025, he joined the Azad Samaj Party (Kanshiram). His family holds significant political clout in the region, with his brother Qadir Rana having served as a former Member of Parliament and Noor Salim Rana as a former MLA.
Rana has been embroiled in multiple legal controversies in the past. In 2025, he faced arrest after an attack on a Commercial Tax Department team inspecting his firm, Rana Steels, over alleged GST evasion and fake billing worth Rs 5.39 crore. Additionally, he faces multiple criminal charges, including electricity theft, alongside an attempted rape case filed by a woman in 2001.
