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 report for submission to the Enforcement Directorate (ED), while officials say the number of suspicious accounts and entities may increase as the investigation progresses.
128 Shell Firms Allegedly Used to Route Funds
According to investigators, the accused allegedly created a network of 128 shell firms to facilitate suspicious transactions running into thousands of crores.
Agencies are also examining possible Goods and Services Tax (GST) evasion linked to these entities.
So far, 10 accused, including alleged kingpin Mahfooz alias Pappu Chhuri, have been arrested.
Police are still searching for his absconding son Faiz, on whom a reward of ₹25,000 has been announced.
Bank Accounts Across Nine Major Banks Under Review
Investigators are scrutinising transaction records, beneficiary details, KYC documents and account-opening procedures linked to the 166 suspected bank accounts.
The identified accounts include:
- 86 accounts in HDFC Bank
- 25 accounts in City Union Bank
- 15 accounts each in Axis Bank and IDBI Bank
- 10 accounts in Yes Bank
- 8 accounts in IDFC Bank
- 5 accounts each in Canara Bank, Bandhan Bank and Bank of Baroda
Authorities are examining whether these accounts were used to layer cybercrime proceeds through multiple financial channels.
KYC and Bank Due Diligence Under Scrutiny
During the probe, investigators found that several accounts were allegedly opened in the names of individuals who claimed they had no knowledge of high-value transactions conducted through them.
Authorities are now examining whether KYC norms and account-opening due diligence were properly followed.
The role of possible bank officials, intermediaries or account facilitators is also being reviewed.
Robbery Case Led to Larger Financial Network
The alleged 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 suspected fake bank accounts, shell firms and large-scale financial transactions.
As the investigation expanded, the case widened to include cyber fraud, money laundering and possible tax evasion.
50 More Accounts Linked to ₹225 Crore Trail
In a related Shivrajpur-linked case, investigators 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 account details, KYC records and complete transaction histories.
Expert Calls for Full Forensic Financial Probe
Cybercrime expert and former IPS officer Prof. Triveni Singh said freezing bank accounts alone is not enough in large-scale cyber financial crimes.
He stressed the need for forensic examination of:
- Banking trails
- Shell companies
- Digital transactions
- Beneficiary accounts
- Mobile devices
- IP logs
- KYC documents
- Communication records
According to him, cybercrime proceeds are often layered through multiple channels to hide their origin, making a scientific investigation of the entire financial ecosystem essential.
Investigation Continues
Police said further legal action will be taken based on evidence collected during the ongoing probe.
Investigators are examining links between suspected bank accounts, shell firms, digital records, financial transactions and the alleged money laundering network to identify all individuals involved.
Shunyatax Global Insight
The alleged ₹3,200 crore cyber money laundering network shows how cybercrime proceeds can move through fake firms, mule accounts, weak KYC systems and layered transactions.
Strong banking compliance, forensic audits, transaction monitoring and rapid inter-agency coordination are essential to dismantling such financial syndicates.
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