Surat: In a major breakthrough in a multi-crore land fraud investigation, Surat Police have arrested four employees of private banks along with a SIM card distributor for allegedly facilitating a fraudulent land transaction worth ₹5.75 crore. Investigators claim the accused helped create and operate mule bank accounts that were later used to route and siphon off money connected to the scam.
Alleged Internal Collusion and Banking Malpractices
The case has exposed serious concerns over misuse of banking systems, fake account networks, and alleged internal collusion that enabled fraudsters to carry out large financial transactions without raising immediate suspicion. Police officials believe the racket may involve additional operatives and are now examining whether similar fraudulent accounts were opened in other districts as well.
According to investigators, the fraud revolved around a disputed land transaction in which forged documentation and manipulated financial channels were allegedly used to transfer crores of rupees. The sale deed in the case was reportedly executed through a power of attorney arrangement, which investigators suspect was used to conceal irregularities and bypass proper verification procedures.
Arrest of Key Insiders and Telecom Suppliers
The arrested accused have been identified as Sandeepkumar Piludariya and Azad Khan, both associated with the Ankleshwar branch of Yes Bank in Bharuch district, Shivani Patel, a relationship manager linked to the same bank, and Yagnik Vaghasia, an executive officer of IDBI Bank’s Ghoddod Road branch in Surat. Apart from the banking staff, SIM card distributor Sanjay Dhandukhiya has also been arrested for allegedly helping the accused procure SIM cards used during the execution of the fraud.
Investigators said the accused allegedly assisted fraudsters in opening mule bank accounts using manipulated or suspicious credentials. These accounts were later used to transfer funds connected to the land transaction, making it difficult for authorities to immediately trace the beneficiaries. Police suspect that the banking channels were deliberately structured to create multiple transaction layers and hide the movement of money.
Irregularities in Verification and Digital Activation
During the preliminary investigation, police reportedly discovered irregularities in account-opening procedures, customer verification records, and transaction monitoring systems. Officials are now scrutinising banking documents, digital communication records, SIM activation details, and transaction trails to determine the full extent of the conspiracy.
Sources familiar with the investigation said the SIM cards supplied through the arrested distributor were allegedly used to activate mobile banking services, OTP verification systems, and communication channels linked to the fraudulent accounts. Investigators believe the use of multiple mobile numbers and banking identities helped the network evade early detection.
The Rising Menace of Organized Mule Networks
The case has once again highlighted growing concerns over the use of mule accounts in organised financial crimes. Cyber and banking fraud experts say such accounts are often opened using forged documents, fake identities, or manipulated verification processes and are later used to launder money generated through scams, land frauds, investment frauds, and cybercrime operations.
Financial crime investigators are now trying to identify the main beneficiaries of the ₹5.75 crore transaction and whether bank insiders knowingly ignored compliance red flags. Officials are also probing whether the accused received commissions or financial incentives in exchange for facilitating the account openings and transaction processing.
Experts warn that collusion involving banking employees significantly increases the sophistication of organised fraud networks because insiders understand internal compliance systems, transaction thresholds, and verification loopholes. Such access allows criminal syndicates to move large amounts of money quickly while reducing the chances of immediate regulatory alerts.
Police are continuing raids and questioning additional suspects connected to the case. Authorities believe more arrests could follow as digital evidence, financial records, and property documents are analysed. Investigators are also coordinating with banking authorities and financial intelligence agencies to trace the complete money trail and identify any wider interstate network linked to the fraud.
