Bhopal: What began as a financial inclusion tool has now emerged as a convenient channel for cybercriminals. Several zero-balance PM Jan Dhan Yojana accounts in Madhya Pradesh’s Betul district were found to have been converted into mule accounts for circulating proceeds of cybercrime. Police have so far arrested three individuals and unearthed transactions worth nearly ₹9.84 crore across seven bank accounts.
According to investigators, five out of the seven accounts were Jan Dhan accounts, including one belonging to a man who had already passed away, exposing serious lapses in account monitoring and KYC compliance.
How the Fraud Came to Light
The racket surfaced when Bisram Ivne (40), a daily wage labourer, approached authorities after discovering that transactions worth nearly ₹2 crore had been routed through his Jan Dhan account since June 2025. He learned about the suspicious activity only during a routine visit to update his KYC details.
A focused inquiry led by the Betul district cyber cell, however, found that ₹1.5 crore had moved through his account alone over this period. The police soon discovered six more accounts showing similar patterns of activity, with individual transactions ranging from ₹47.44 lakh to ₹2.24 crore.
One of the flagged Jan Dhan accounts belonged to Rajendra Varde, who is no longer alive. Another was a student scholarship account held by a 20-year-old college student, Narmada Ivne, further highlighting how vulnerable low-income and unattended accounts are to criminal exploitation.
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Proceeds of Cybercrime from Multiple States
Betul SP confirmed that the combined ₹9.84 crore detected so far represents proceeds from cybercrime carried out in Maharashtra, Karnataka, Delhi and Haryana.
The fraud money traced to these accounts is linked to:
- Cryptocurrency investment scams
- Fake customer care centre operations
- Phishing-based fraud
These accounts functioned purely as mule accounts, used to park and circulate funds siphoned from victims across states.
Three Arrested, Digital Evidence Seized
Multiple police teams conducted raids at two hideouts in Indore, arresting: Raja alias Ayush Chauhan (28), Ankit Rajput (32) – brother-in-law of the main accused, Narendra Singh Rajput (42). The seizures were extensive: 15 mobile phones, 21 ATM cards, ₹28,000 in cash, and 11 passbooks from nationalised and private banks. Investigators say these documents reveal that 20 or more accounts were being used to funnel cyber-fraud money across Madhya Pradesh, many of them likely Jan Dhan accounts.
Bank Insider Involvement Confirmed
The police have also uncovered the involvement of an ad hoc employee of a bank, who allegedly facilitated access to these accounts. His role included:
- Changing the registered mobile numbers of account holders
- Issuing fresh ATM cards
- Activating internet/mobile banking for accounts
- Enabling access even to the account of the deceased holder
Investigators say this insider role was crucial for the gang to gain control over multiple dormant or vulnerable accounts.
A Multi-Layered Racket With Links Beyond MP
Authorities emphasise that the arrested trio represents only one operational layer of a larger, multi-state network. The “forward and backward linkages” — the core operators who orchestrate the larger cyber-fraud pipeline — are suspected to be based in other states. The investigation is ongoing, and more arrests are expected as police continue to trace digital footprints and account trails.
