Investigating agencies have intensified their probe into an alleged ₹3,200 crore cyber fraud and money laundering network after preliminary findings revealed 166 bank accounts across nine major banks that were allegedly used to route and layer proceeds of cybercrime. Police are preparing a detailed investigation report for submission to the Enforcement Directorate (ED), while officials say the number of suspicious accounts and entities could increase as the investigation progresses.
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According to investigators, the accused allegedly created a network of 128 shell firms to facilitate the movement of thousands of crores of rupees through suspicious financial transactions. Agencies are also examining possible Goods and Services Tax (GST) evasion linked to these entities. Ten accused, including the alleged kingpin Mahfooz alias Pappu Chhuri, have been arrested so far, while efforts continue to trace his absconding son Faiz, on whom a reward of ₹25,000 has been announced.
The investigation has identified the largest number of suspected accounts—86—in HDFC Bank. In addition, 25 accounts were found in City Union Bank, 15 each in Axis Bank and IDBI Bank, 10 in Yes Bank, eight in IDFC Bank, and five each in Canara Bank, Bandhan Bank and Bank of Baroda. Investigators are scrutinising transaction records, beneficiary details, KYC documents and account-opening procedures linked to these accounts.
During the probe, investigators also discovered that several accounts had allegedly been opened in the names of individuals who claimed to have no knowledge of the high-value transactions carried out through them. Authorities are examining whether due diligence and KYC verification procedures were properly followed and whether any bank officials or other intermediaries played a role in facilitating the opening or operation of these accounts.
The alleged financial network came to light during the investigation of a ₹24 lakh robbery reported on February 16, 2026. What initially appeared to be a routine robbery case eventually led investigators to an extensive network of suspected fake bank accounts, shell companies and large-scale financial transactions. As the probe expanded, its scope widened to include cyber fraud, money laundering and suspected tax evasion.
In a related development, investigators examining another case linked to Shivrajpur have identified more than 50 additional bank accounts allegedly used to route approximately ₹225 crore generated through suspected cyber fraud. These accounts were reportedly opened in branches of multiple public sector banks. Notices have been issued to the concerned banks seeking detailed account information, KYC records and transaction histories.
Prof. Triveni Singh, renowned cybercrime expert and former IPS officer, said that freezing bank accounts alone is insufficient in large-scale cyber financial crimes. He stressed that investigators must conduct a comprehensive forensic examination of banking trails, digital transactions, shell companies, beneficiary accounts, mobile devices, IP logs, KYC documentation and other digital evidence to identify the complete laundering network. According to him, cybercrime proceeds are often layered through multiple financial channels to conceal their origin, making a scientific investigation of the entire financial ecosystem essential.
Police said the investigation is continuing and further legal action will be taken based on the evidence collected. Investigators are examining the links between the suspected bank accounts, shell firms, financial transactions, digital records and the alleged money laundering network to identify all individuals involved and dismantle the broader cyber financial syndicate.
