MUMBAI: The Central Bureau of Investigation is probing the role of a former branch manager of a private bank in a cyber fraud case involving proceeds of crime worth ₹3.74 crore that were received in a mule bank account on July 2 last year. Investigators said the money was deposited into the account through 11 transactions by 10 victims of cyber fraud and was later transferred to other accounts.
Approval Granted to Probe Bank Official
CBI officials said the agency’s Mumbai unit obtained prior approval on March 26 under the Prevention of Corruption Act to examine the role of the bank official under scrutiny, identified as S Sharma, in connection with the mule account. The account in question was held in the name of a cargo and courier firm.
The agency said victims were allegedly induced to transfer funds into multiple mule accounts through deceptive methods including impersonation, digital arrest, customs fraud, online financial fraud, identity theft, phishing and cyber bullying. On July 4, 2025, the CBI’s Mumbai unit registered a First Information Report against the firm, its director S Palande, unknown cyber fraudsters, intermediary agents, and unknown public and private bank officials.
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Charges and Arrests in the Case
The accused were booked for criminal conspiracy, cheating by use of computer resources, forgery for the purpose of cheating, and abuse of official position by public servants under relevant sections of the Information Technology Act, the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita. Palande was later arrested by the CBI.
Officials said six accused persons, including the owner of a consulting firm, were charge-sheeted last year. However, the probe remains underway into the role of public servants and the fund trail of the crime proceeds, including foreign remittances.
Fund Trail Extends Beyond India
The investigation has so far found that funds worth ₹3.8 lakh were transferred from the mule account under scrutiny to the account of a Delhi-based individual. Investigators said the money was later moved to the account of a firm based in the United Arab Emirates, identified as W Consulting.
On March 17 and 18 this year, the CBI questioned an India-based director of the consulting firm and seized two mobile phones from his possession to examine what officials described as suspicious chats linked to the case. During questioning, the businessman denied any wrongdoing or connection to the matter. In searches conducted in Mumbai and other cities in July last year, the agency also seized documents and digital evidence including mobile phones, an iPad, bank account records, transaction details and copies of Know Your Customer-linked documents.
