The Kaiserbagh police have dismantled an organized network operating mule bank accounts to divert illicit proceeds generated through cyber fraud, arresting six individuals, including four juveniles, during a raid at a hotel on Latouche Road. Following the operation, law enforcement authorities initiated a financial freeze on approximately ₹3.28 crore deposited across suspicious accounts linked to the State Bank of India.
Hotel Raid Leads to Multiple Apprehensions
Acting on intelligence received on September 3, a police team searched Room No. 101 of Ashirwad Hotel on Latouche Road, where suspects were allegedly staying to execute their financial operations. The tip-off revealed that the group persuaded individuals to open bank accounts in their names, which were subsequently converted into mule conduits to receive stolen cybercrime funds. The deposited balances were then routed through automated teller machines and shifted into other third-party accounts.
Police discovered five individuals inside the room during the entry, four of whom were juveniles. A sixth suspect arrived at the location during the raid and was immediately detained. A search of the premises led to the seizure of six ATM cards, a Jio SIM card, a BharatPe swiping machine, and two bank passbooks found inside a bag, alongside mobile devices and unaccounted cash.
Commission System and Network Operations
Interrogation of the suspects identified 21-year-old Ritesh Singh, a native of Gopalganj in Bihar, as one of the key adult operatives present. The suspects stated to police that money obtained from various cyber fraud schemes was directed into designated mule accounts. Team members then completed cash withdrawals via ATMs and deposited the balances into State Bank of India accounts belonging to other individuals, receiving fixed commissions for executing the transfers.
Further investigation established the involvement of 19-year-old Prince Kushwaha, a resident of Kakori in Lucknow, who was taken into custody shortly after. During interrogation, the suspects revealed that promises of rapid earnings and affluent lifestyles lured them into joining the illicit syndicate. Handlers assured recruits that handling online transfers through mule accounts carried minimal risk of detection, assigning them the tasks of collection, cash extraction, and secondary account distribution.
- Accounts Frozen as Trail Investigation Widens
Investigators noted that the operation was structured to generate multiple financial layers, deliberately obscuring transaction trails to prevent investigators from pinpointing the primary beneficiaries. Cyber teams have initiated forensic reviews into connected State Bank of India accounts, imposing debit freezes on roughly ₹3.28 crore to halt further transfers while withdrawal trails and account holders are cross-examined.
The two adult suspects have been remanded in judicial custody after appearing before a local court, while the four minors have been produced before the Juvenile Justice Board under statutory provisions. Police efforts are focused on locating other absconding members of the syndicate, analyzing transaction histories to determine the total number of linked cybercrime complaints, and identifying the network leaders directing the fund transfers.
