Rajkot: A major breakthrough has emerged in the investigation into a ₹182.37 crore cyber fraud racket operating across India. Allegedly driven by the lure of quick commissions and pressure to meet account-opening targets, three senior executives of two private sector banks are accused of facilitating the opening of ‘mule accounts’ that were used to route and launder large volumes of scam money. The East Kutch Cyber Crime Police arrested the three bank officials on Friday.
The arrested accused have been identified as Chandan Pandya (41), Hitesh Kapta (38) and Yasin Sayecha. All three were responsible for onboarding new accounts at their respective branches. Their names surfaced during interrogation of previously arrested suspects, supported by digital evidence and chat records recovered during the probe.
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Investigators said the pressure to achieve aggressive account-opening targets, coupled with the promise of commissions, created vulnerabilities within the banking system. The cybercrime syndicate allegedly exploited this weakness. Current accounts were opened in the names of fake firms and shell companies with relaxed scrutiny.
According to the investigation, identity documents of poor and less-educated villagers were used to open high-value accounts. GST registrations were obtained, and small shops were rented to create the appearance of legitimate commercial activity. These measures helped the accounts appear compliant during preliminary verification checks.
The probe further revealed that several accounts had earlier been frozen following cyber fraud complaints registered in different states. However, it is alleged that the arrested bank officials assisted the fraudsters in getting some of these accounts reactivated by pointing out procedural loopholes. Once operational again, the accounts were allegedly reused to route additional fraudulent proceeds.
So far, 81 suspicious accounts have been identified in connection with the racket. At least 74 cyber fraud complaints registered across various states have been linked to these accounts, indicating the scale and inter-state spread of the operation.
Earlier in the case, police had arrested Yash Bhatia (27), Siddharth Soni (34), Sahil Sharma (26) and Alpesh Luhar (40). What initially appeared to be a simple rental fraud complaint eventually led investigators to uncover one of the region’s largest cyber-enabled money laundering networks.
Investigating agencies believe that proceeds from multiple online scams—including fake investment schemes, job frauds, loan scams and so-called “digital arrest” frauds—were funneled through these mule accounts. Funds were layered through multiple transfers to obscure the money trail and make detection difficult.
Officials indicated that further arrests are likely as the investigation continues. Teams are currently analysing digital transaction trails, GST records and financial linkages tied to the identified accounts. Efforts are also underway to trace ultimate beneficiaries and intermediaries who may have played supporting roles in the laundering chain.
Experts point out that mule accounts remain one of the most critical yet vulnerable links in cybercrime operations. Stronger internal controls, stricter KYC enforcement and closer monitoring of unusual transaction patterns could significantly reduce such large-scale financial frauds.
For now, the ₹182.37 crore scam has raised serious questions about internal banking oversight and compliance safeguards, highlighting the urgent need for tighter scrutiny in account-opening procedures.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
