Muzaffarpur (Bihar). The Enforcement Directorate (ED) on December 1, 2025, carried out search operations at four locations in Muzaffarpur in connection with a major banking fraud and money-laundering case linked to the Punjab National Bank (PNB). The probe has revealed that nearly ₹1.29 crore was fraudulently withdrawn from the savings accounts of two customers of PNB’s Jawaharlal Road branch in the city.
During the searches, the ED recovered incriminating material and crucial documents, which have been seized for further examination. The agency has also identified and frozen bank balances amounting to around ₹83 lakh, suspected to be proceeds of crime. Officials said the investigation is ongoing and further developments are expected.
Probe initiated on the basis of Bihar Police FIRs
The ED launched the investigation based on two FIRs registered at the Town Police Station, Muzaffarpur, under various provisions of the Indian Penal Code, 1860. These offences qualify as scheduled offences under the Prevention of Money Laundering Act (PMLA), 2002, enabling the central agency to step in.
Preliminary findings indicate that the case goes beyond a routine instance of bank fraud. Investigators say it involves a well-planned scheme to conceal, layer and integrate illicit funds, pointing to a deliberate attempt at laundering the proceeds of crime.
₹1.07 crore and ₹22.40 lakh siphoned from two accounts
According to the ED, the fraud was executed through two separate savings accounts held at PNB’s Jawaharlal Road branch. One account saw an illegal withdrawal of approximately ₹1.07 crore, while the second account was drained of around ₹22.40 lakh, taking the total fraud amount to about ₹1.29 crore.
The stolen funds were routed through multiple accounts and transactions, a process known as layering, to complicate the money trail and evade detection by banks and law enforcement agencies.
SIM swapping and online banking manipulation at the core
Investigations have revealed that the fraud was carried out using a highly sophisticated modus operandi involving SIM swapping and manipulation of online banking systems. The accused targeted mobile numbers that were registered with the bank for SMS alerts and online banking authentication.
Using forged identity documents, the fraudsters obtained duplicate SIM cards from telecom service providers. Once they gained control over the victims’ mobile numbers, they contacted PNB’s toll-free customer service and fraudulently activated internet banking facilities on the victims’ accounts. This enabled them to transfer large sums of money without the account holders’ knowledge.
Cash withdrawn from Kolkata ATMs, re-deposited via CDMs
The ED further found that after the funds were transferred through several layers of accounts, a significant portion was withdrawn in cash from ATMs in Kolkata. The cash was subsequently deposited into different bank accounts using Cash Deposit Machines (CDMs), a tactic aimed at further obscuring the origin and movement of the money.
Officials say this method reflects a growing trend among cyber and banking fraudsters, who increasingly rely on geographical dispersion and cash-based transactions to break audit trails.
Key evidence seized, wider network under scanner
During the search operations, the ED seized digital evidence, banking records and other documents considered vital to the investigation. The agency is now examining whether more individuals are involved and whether the racket has links to other states or organised criminal networks operating beyond Bihar.
Senior officials noted that the case highlights the vulnerabilities of digital banking systems when combined with identity theft and telecom fraud. They added that further action, including attachment of assets and possible arrests, may follow as the probe progresses.
The investigation, the ED said, underscores the growing challenge of tackling technology-driven financial crimes, where coordination between banks, telecom companies and enforcement agencies becomes critical to prevent and detect large-scale fraud.
