Varanasi | December 25, 2025: In a major breakthrough in a cyber fraud investigation, the Central Bureau of Investigation (CBI) has arrested a branch manager of Canara Bank in Varanasi for her alleged role in facilitating cybercrime-related transactions. The accused, Shalini Sinha, was taken into custody by a CBI team that arrived from New Delhi and conducted a coordinated operation at the bank’s Chitaipur branch.
According to officials, the arrest was made in connection with a large cyber fraud network in which mule bank accounts were allegedly opened and used to route defrauded money. After her arrest, the accused was produced before a local court, which granted transit remand, allowing the CBI to take her to Delhi for further interrogation.
Produced Before Court, Taken to Delhi for Further Investigation
CBI officials informed the court that the case involves an inter-state cyber fraud racket and requires extensive questioning of the accused in Delhi. The investigation officer submitted that several financial trails linked to the case extend beyond Uttar Pradesh.
After hearing both sides, the court directed that the accused be produced before the competent court in Delhi by December 26 afternoon, following which the CBI team escorted her out of the city.
The proceedings were conducted before the Special Judge (Prevention of Corruption Act), where the prosecution emphasized the seriousness of the allegations and the need for custodial interrogation.
How the Case Unfolded: Mule Accounts at the Centre of the Scam
According to the CBI’s preliminary investigation, Shalini Sinha allegedly misused her official position to facilitate the opening of bank accounts that were later used by cyber criminals to transfer illegally obtained money.
Key findings of the probe include:
- Bank accounts opened using suspicious or incomplete documents
- Transactions running into several crores of rupees
- Rapid movement of funds across multiple accounts
- Serious lapses in Know Your Customer (KYC) verification
Accounts allegedly used for routing money obtained through cyber fraud, the investigation gained momentum after the arrest of Niranjan Gupta, another accused in the case. During interrogation, Gupta reportedly disclosed the involvement of the bank official, following which the CBI initiated action.
Posted in Varanasi for Five Years, Earlier Served in Patna
Sources said that Shalini Sinha was earlier posted as an assistant branch manager in Patna before being transferred to Varanasi nearly five years ago. She was serving as the branch manager at the Chitaipur branch at the time of the alleged offence.
Investigators believe that during this period, she developed links with cyber fraud operators and facilitated the opening and operation of mule accounts used to launder money.
However, during court proceedings, the defense maintained that the accused is innocent and has been falsely implicated. The prosecution, on the other hand, argued that documentary and digital evidence clearly establishes her role.
Similar Cases Involving Bank Staff Reported Earlier
This is not the first instance where bank officials have been found involved in cyber fraud cases. In recent months:
- A bank employee in Hardoi was arrested in a cyber fraud case involving lakhs of rupees
- In Lucknow, a bank official was arrested in connection with a ₹3.5 crore online fraud targeting a retired teacher
- Several cases have surfaced where mule accounts were used to siphon off funds
These incidents have raised serious concerns over internal monitoring and compliance mechanisms in banks.
CBI and Police Issue Advisory to Public
Speaking on the matter, ACP (Cyber Crime) Vidush Saxena urged citizens to remain vigilant and report cyber frauds immediately.
He advised:
- Call the national cybercrime helpline 1930 without delay
- Lodge a complaint within 1–2 hours to improve chances of fund recovery
- Never share OTPs, banking details or click on suspicious links
- Use strong passwords and two-factor authentication
