The West Bengal Cyber Crime wing has made a significant breakthrough, uncovering a massive organized cybercrime network that allegedly defrauded victims of a staggering Rs 317 crore. The investigation, which has sent shockwaves through the corporate and financial sectors, has notably identified prominent industrialist and Ruia Group Chairman, Pawan Kumar Ruia, as a key beneficiary of the illicit funds.
The Unfolding of a Multi-Crore Cyber Fraud
This elaborate scam came to light following a complaint filed in April 2024 by a 65-year-old retired State Bank of India employee. The criminal network operated by targeting victims through two primary methods: fraudulent investment schemes and sophisticated "digital arrest" scams conducted via platforms like WhatsApp and Telegram.
According to police officials, the illicit funds were initially deposited into accounts, often in nationalised banks, before being systematically funneled into the current accounts of a complex web of shell companies. In a bold move to conceal the money trail, a significant portion of the crime proceeds, amounting to Rs 170 crore, was converted into cryptocurrency.
The Vast Scale and Key Players
The probe has so far revealed an extensive network of 148 shell companies linked to the scam. A startling discovery was that 73 of these companies share the same registered address at 9, Ezra Street in Kolkata. Police investigations confirmed that no actual offices existed at this location.
Further deepening the complexity, the probe found that 11 of the 16 linked companies have common directors who collectively hold directorships in 186 companies across India. One entity, Hughli Machineries Pvt LtdRs 97 crore.
Investigators allege that many of these shell companies are either directly or indirectly connected to industrialist Pawan Kumar Ruia. The First Information Report (FIR) names Ruia, his family members Raghav Ruia, Pallabi Ruia, Soma Ruia, and Sukhil Ruia, and his close associate Rahul Verma, who was arrested on November 1. The Ruia family members are suspected of receiving money from at least 23 complainants.
Raids, Investigations, and a Checkered Past
In a significant development, investigators conducted search operations on November 6 and November 12 at several key locations in Kolkata, including the residence of industrialist Pawan Ruia, and premises linked to Ruia Centre and Dunlop Industrial Products Pvt Ltd.
This is not Ruia's first encounter with legal troubles. The industrialist, who holds degrees in Law, chartered accountancy, cost accountancy, and company secretaryship from the University of Calcutta, was previously arrested in 2016 in a Rs 50 crore forgery and theft case involving the Indian Railways.
Officials are currently probing whether Ruia merely allowed the shell companies to be used for siphoning money or if he was directly involved in orchestrating the scam. The National Cyber Crime Reporting Portal has recorded 1,379 fraud-related complaints connected to this network, highlighting the widespread impact of this sophisticated cybercrime operation.
