A racket involving fake firms and mule bank accounts has come to light in Bareilly, with transactions worth ₹30.65 crore routed through different accounts opened in two banks. Police have arrested two suspects, and preliminary questioning points to large-scale financial manipulation. Investigating agencies are now examining whether the entire network was tied to hawala channels or part of a bigger cyber-financial syndicate.
The case surfaced after a resident from the Bhuta area complained that bank accounts were opened in his name and being misused. According to the complaint, acquaintances collected his Aadhaar and PAN, opened accounts, and kept all related documents with themselves.
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Investigations revealed that accounts were opened in the names of different “shell firms” across HDFC Bank and Punjab & Sind Bank. One account, registered under Saty Saahab Traders, alone recorded ₹30.65 crore in transactions within a year. Other firms — including Mahaveer Trading Company, Mahakaal Traders and Sumit Traders — were also allegedly used to move large sums.
The detailed ledger of one firm has already been traced, while scrutiny of the remaining accounts is underway. Early indications suggest the money may have been funneled through laundering and hawala-style channels. The arrested suspects have been sent to jail, and investigators are preparing to seek custody for further questioning.
How the Entire Operation Was Set Up
According to investigators, Aadhaar and PAN were first taken from the victim to apply for bank accounts. Using questionable documentation, the accounts were then activated.
Passbooks, cheque books, debit cards — even UPI access — reportedly remained entirely in the hands of the accused.
Signatures on cheques were obtained in advance so that high-value transfers could be executed without interruption. The same accounts were then used to circulate crores of rupees to multiple destinations.
FCRF Insight: “Mule Accounts Are Becoming the Biggest Threat”
Experts at the Future Crime Research Foundation (FCRF) warn that in India’s growing cyber-financial ecosystem, mule accounts have become the most critical link.
According to FCRF:
- Criminal networks collect identity documents and open accounts
- The named account holder often has no idea how the account is being used
- These accounts become “transit hubs” for illegal transactions
In many cases, such locally opened mule accounts eventually connect to national and cross-border networks, making the trail of money extremely difficult to trace.
What Are Mule Accounts and Shell Companies?
A mule account is a bank account legally registered in someone’s name — but controlled and operated by someone else. These are widely used in online fraud, hawala, and money laundering.
A shell company exists mostly on paper. It shows little or no genuine business activity — yet becomes a convenient vehicle to move massive sums under the guise of legitimate trade.
Probe Continues — Public Urged to Stay Alert
Investigating teams are now mapping where the money ultimately went and how many people may be involved in the network.
Citizens have been advised to exercise caution:
- Never hand over Aadhaar or PAN copies to unknown people
- Check bank statements regularly
- Report suspicious transactions immediately to the bank and police
- Avoid associating with unknown firms promising easy money
This case underscores how mule accounts and shell firms are being weaponized for large-scale economic crimes — and why awareness, timely reporting, and rigorous investigation remain the strongest safeguards.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
