Bank Executives Arrested in Gujarat for Alleged Role in Rs 182 Crore Cyberfraud Network
In a significant crackdown on financial crime, the Kutch East Cybercrime police in Gujarat have arrested three executives from two private sector banks for their alleged involvement in a massive cyberfraud racket. The bankers, including two branch managers from a leading Indian bank, are accused of circumventing regulations to open mule accounts that facilitated the laundering of nearly Rs 182.37 crores.
Details of the Arrests and Investigation
The arrests were made on Friday following an ongoing investigation into the cyberfraud network, which was busted last week. Those taken into custody are Chandan Pandya (41), Hitesh Kapta (38), and Yasin Sayecha, all of whom were responsible for opening new accounts at their respective banks. According to Kutch East Superintendent of Police Sagar Bagmar, the executives were in constant communication with previously arrested suspects, with investigators uncovering chat records linking them to other members of the nationwide fraud operation.
The probe revealed that the bank officials were under intense pressure to meet targets for opening new accounts. Cybercriminals allegedly exploited this vulnerability by offering commissions in exchange for a lenient approach to opening current accounts. This led to the creation of multiple accounts under fake firms and shell companies, using identity documents of poor and less-educated villagers to establish high-value accounts, obtain GST registrations, and rent shops to simulate legitimate business activities.
Procedural Exploits and Further Findings
Investigators found that some of these accounts had been frozen after complaints were filed through cyber helplines in other states. However, the arrested bank executives allegedly assisted the fraudsters in unfreezing these accounts by identifying procedural loopholes, enabling their reuse for additional cyberfrauds. The money funneled through these accounts is believed to be proceeds from cybercrimes committed across various parts of India.
So far, at least 74 cyberfraud complaints from different states have been linked to the 81 accounts identified in the investigation. The police had earlier arrested four other individuals: Yash Bhatia (27), Siddharth Soni (34), Sahil Sharma (26), and Alpesh Luhar (40). What began as a simple rental fraud complaint has now exposed one of the largest cyber-enabled financial fraud networks in the region, with police indicating that further arrests are likely as the investigation progresses.
