India, March 4 -- The Kanpur police have unearthed an organised GST fraud racket in which the accused allegedly used identity documents of poor and unsuspecting individuals to float fake firms and route transactions worth nearly Rs 250 crore, a senior official said on Tuesday.

Two people have been arrested while five others are absconding, they said, adding that the fraud appears to be part of a wider inter-state tax evasion network.

The arrested accused have been identified as Kapil Mishra and Amardeep alias Raj.

Addressing a press conference, Police Commissioner Raghubir Lal said the gang targeted e-rickshaw drivers, students and economically weaker persons by luring them with promises of easy loans.

"The accused collected PAN, Aadh...