In a major breakthrough, the Gujarat CID Crime Branch has unearthed a sprawling cyber-fraud and money-laundering racket involving fake bank accounts and digital transfers worth over ₹247 crore. The racket, according to investigators, was facilitating the movement of funds looted from victims across India through online scams and fraudulent investment schemes.
Two brothers — Dilip Chaudhary and Shailesh Chaudhary, residents of Kasra village in Kankrej taluka — have been arrested. Investigators allege that the duo opened multiple bank accounts in their own and others’ names and handed them over to organized cybercrime groups for use in transferring and withdrawing fraudulent proceeds.
Hundreds of Fake Accounts, Crores Laundered Through Commission Deals
Officials revealed that the accused earned commissions on every transfer they enabled. The network reportedly operated dozens of accounts linked to 542 cybercrime cases nationwide, including 70 cases registered within Gujarat alone.
A forensic audit has found that transactions exceeding ₹247 crore passed through 24 accounts tied to the Chaudhary brothers. These funds were linked to scams ranging from fake online investment platforms and Telegram “task-based” schemes to fraudulent job offers that duped citizens across the country.
Police recovered three mobile phones and ₹5 lakh in cash from the accused during the raid.
‘Mule Accounts’ – The Backbone of Cyber Fraud
According to senior CID officers, the accused acted as local handlers or “money mules,” running bank accounts that cybercriminals used to conceal the source and destination of stolen funds.
“No cyber fraud can operate sustainably without a mule network. These local accounts form the backbone of every digital scam,” an officer said, emphasizing that the Chaudhary brothers’ role was crucial in moving the stolen money through multiple layers of accounts to avoid detection.
Public Warning: ‘Renting Out Bank Accounts Is a Crime’
The CID has issued a stern warning to citizens against lending or “renting out” their bank accounts or SIM cards to others. Officials reminded the public that even if account holders are not directly involved in fraud, they can still be booked under the Information Technology Act and Prevention of Money Laundering Act (PMLA) if their accounts are used for illegal financial activity.
“Many people, out of greed, give their accounts to others for small commissions. What they don’t realize is that they are enabling large-scale cyber fraud and can face imprisonment,” a senior official said.
Expert View – Prof. Triveni Singh (Ex-IPS Officer, Cyber Crime Specialist)
Noted cybercrime expert and former IPS officer Professor Triveni Singh commented:
“This arrest exposes the invisible financial network behind cyber fraud in India. Criminals today are not just using technology — they are exploiting local financial systems through mule accounts. Investigations must focus as much on the money trail as on the technology used.”
He added that thousands of accounts across India are being misused every month for cybercrime and called for stronger inter-agency monitoring and banking scrutiny.
Investigation Expands Nationwide
CID officials said that interrogation of the Chaudhary brothers is expected to reveal more names connected to the racket. A special investigation team has been formed to track the entire transaction chain and identify the masterminds operating from other states and possibly abroad.
Authorities believe this case highlights the growing scale of cyber money laundering across India — where every local account can become a crucial link in a global fraud chain.
