New Delhi: In a major development exposing serious vulnerabilities in the banking system, the Central Bureau of Investigation (CBI) has registered an FIR against two former branch heads of Punjab & Sind Bank for their alleged role in a ₹1,621-crore mule account and money-laundering scam.
According to the agency, at least 17 mule accounts were opened in two bank branches in Rajasthan’s Sri Ganganagar district, using forged KYC documents and fake company credentials. These accounts were then used to route and layer proceeds of cyber fraud and other illegal activities, allowing the accused to transfer huge sums of money undetected.
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Former branch managers under scanner
The FIR names:
- Aman Anand, then Branch Head of the main branch, and
- Vikas Wadhwa, former Branch Head of the Government Girls Senior Secondary School branch, along with several entities and individuals suspected of facilitating the account-opening process.
CBI alleges that the accused deliberately accepted fraudulent identity papers, fabricated rental agreements, false business registrations, and fake site-inspection reports, thereby violating established KYC norms, due-diligence standards, and internal SOPs.
How mule accounts became a channel for large-scale fraud
Investigators say the 17 firms in whose names the accounts were opened did not exist in reality. These shell entities were created solely to mask illegal financial transactions and make cyber-crime proceeds appear legitimate.
Through these accounts, over ₹1,621 crore was transferred via digital banking channels, including RTGS and online payment systems. The funds were then layered and diverted through multiple routes to hide their origin and beneficiaries.
CBI suspects that this was part of a well-organised criminal network operating with the help of bank insiders and external agents.
Serious questions over bank oversight
The scale of the scam has raised serious concerns over the bank’s internal checks and regulatory compliance mechanisms. Experts note that such large-value transactions could not have occurred without systemic lapses or possible collusion at the branch level.
The agency has stated that the scam has caused significant reputational damage to Punjab & Sind Bank, and if the allegations are proven, the bank may also face heavy regulatory penalties and legal scrutiny.
CBI tracking digital trail; wider network suspected
CBI is now Examining the digital trail and fund-flow pattern of the mule accounts, Identifying the ultimate beneficiaries of the transactions, and Assessing whether similar mule accounts are active across other branches and states.
Officials believe the case could be linked to a national-level financial crime syndicate targeting government and institutional bank accounts.
