Key Accused in ₹8.1 Crore Cyber Fraud Case Linked to Ex-Punjab IG Dies in Patiala Hospital

Chander Kant, a prime suspect in the ₹8.1 crore cyber fraud scandal involving retired Punjab Police IG AS Chahal, died at Government Rajindra Hospital in Patiala on January 9, 2026, due to complications related to diabetes. The 40-year-old, who had been arrested from Maharashtra, passed away around 4 pm while on judicial remand, adding an unexpected twist to the high-profile cybercrime investigation.

Dramatic Turn in Ongoing Probe

Kant was among seven accused arrested from Maharashtra - including Lakhan Srichand, Somnath, Ranjit Nambardar, Prateek Uttam, Ashish Kumar Pandey and Mohammad Sharif - for allegedly activating SIM cards in India that were later dispatched to Dubai-based handlers. The Patiala Cyber Crime Police registered an FIR under multiple sections of the Bharatiya Nyaya Sanhita and the IT Act for cheating, forgery, impersonation and criminal conspiracy.

The arrests followed the December 22 incident in which AS Chahal suffered a self-inflicted gunshot wound at his Patiala residence, an event that brought the cyber fraud racket under intense scrutiny. Kant’s health reportedly deteriorated during a remand hearing earlier this week, after which he was admitted to hospital. A post-mortem examination is scheduled for January 10.

Role in International SIM Fraud Network

Investigators say Kant played a key operational role in sourcing SIM cards locally, bypassing KYC norms through mule identities, and routing them to overseas cybercrime hubs in the UAE. These SIMs were allegedly used for phishing attacks, OTP interception and banking frauds, reflecting how cross-border cybercrime networks exploit gaps in domestic verification systems.

Officials note that Punjab has increasingly emerged as a conduit for such operations, with over 15,000 cyber fraud complaints recorded in 2025 alone, many linked to international syndicates. The case has also raised concerns about financial trail manipulation, where weak compliance controls - from telecom onboarding to accounting oversight - allow illicit funds to circulate undetected, reinforcing the broader need for stronger financial governance and transparent bookkeeping services in india across vulnerable sectors.

Investigation Continues Amid Setback

Despite Kant’s death, the investigation is continuing against the remaining accused, who are currently on judicial remand. Police are tracing fund flows, freezing suspected assets and analysing call data records to establish links with Dubai-based operators. SIM vendors and intermediaries are also under renewed scrutiny following recent amendments to the Telecom Act.

Forensic audits of digital devices recovered from AS Chahal’s residence are ongoing. His family has denied any deliberate involvement, maintaining that he may have been subjected to coercion and extortion by the fraud network.

Broader Implications for Cyber Crime Fight

• Highlights the growing threat posed by SIM mule rackets, which investigators say enable nearly 70% of large-scale financial frauds

• Underscores the importance of medical safeguards for undertrial prisoners with chronic health conditions

• Raises questions about possible insider vulnerabilities and systemic loopholes in regional cybercrime enforcement

About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety issues. Her work focuses on emerging threats and evolving legal responses in India.