New Delhi: The Economic Offences Wing (EOW) of Delhi Police has exposed a major banking fraud involving the misuse of an NGO bank account and arrested a 58-year-old man, Sudama Narware, for allegedly playing a key role in a multi-crore cheque forgery and fund diversion racket.
University Account Siphoning and Inter-State Routing
The case originated from a complaint linked to fraudulent transactions in the bank account of a public university, where investigators found that forged cheques had been used to illegally withdraw funds worth approximately ₹6.25 crore.
According to the investigation, three fake cheques allegedly issued in the name of the university were presented in 2019. Two of these cheques were cleared, resulting in the transfer of around ₹5.20 crore into multiple bank accounts across different states.
A portion of the diverted funds was traced to accounts in Vadodara, Gujarat, and Betul in Madhya Pradesh. During the probe, investigators found that the accused, Sudama Narware, was serving as the secretary and authorised signatory of an NGO whose account was allegedly misused as a key conduit in the fraud.
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Conduit Manipulations and Shell Company Layering
Officials alleged that Narware exploited his position to route and further transfer the stolen funds into different accounts. A significant part of the money trail—about ₹2.07 crore—was allegedly circulated through multiple accounts and at least five shell companies, primarily operating in Delhi, to conceal the origin of the funds.
Police officials confirmed that three other accused have already been arrested in connection with the case, while Narware was recently apprehended from Betul district in Madhya Pradesh. Investigators believe the fraud is not limited to isolated individuals and may involve a wider organised network.
The accused are currently being interrogated, and police are examining detailed banking records, cheque instruments, and transaction trails to identify additional beneficiaries and collaborators involved in the laundering process.
Structured Inter-Jurisdiction Deceptions and Paper Entities
Preliminary findings suggest that the group operated through a structured mechanism involving fake documentation and coordinated fund movement across multiple jurisdictions. The NGO account was allegedly used as a “layering channel”, enabling large sums to be broken into smaller transactions and routed through different entities to avoid detection.
Authorities further indicated that several of the companies involved in the transactions appear to exist only on paper and were allegedly created to give a legitimate appearance to illicit financial flows.
Legal experts note that if the allegations are proven, the accused could face serious charges including cheating, forgery, criminal conspiracy, and misappropriation of public funds under relevant criminal provisions. Bank accounts linked to the accused have already been frozen, and forensic audit of digital and financial records is underway.
Cross-State Financial Crimes and Forensic Application Audits
Investigators are also expanding the probe to determine whether the fraud has links beyond Delhi and whether similar patterns have been used in other banking transactions across states. Officials believe the case may represent a fragment of a larger financial crime network.
The EOW has intensified efforts to map the complete money trail, focusing on cross-state banking operations and digital transaction logs. Officials say coordination with financial institutions and enhanced tracking mechanisms are critical to dismantling such layered fraud structures.
At present, interrogation of the arrested accused continues alongside forensic analysis of mobile phones, banking applications, and digital communication records. Investigators expect further revelations in the coming days as the financial network behind the fraud is gradually unraveled.
