₹3,200 Crore Cyber Money Laundering Network Exposed: 166 Bank Accounts Investigated

Authorities have escalated their investigation into a suspected ₹3,200 crore cyber fraud and money laundering operation following the identification of 166 bank accounts across nine major financial institutions.

Investigation into Cyber Fraud and Money Laundering

Authorities have escalated their investigation into a suspected ₹3,200 crore cyber fraud and money laundering operation following the identification of 166 bank accounts across nine major financial institutions. These accounts are believed to have been utilized to process and obscure illicit proceeds from cybercrime activities. Law enforcement agencies are compiling a comprehensive report for the Enforcement Directorate, with officials indicating that the scope of the investigation may expand as additional accounts and entities are uncovered.

Shell Companies and GST Evasion

The probe revealed the establishment of 128 shell companies designed to facilitate the movement of substantial funds through irregular financial transactions. Investigators are also scrutinizing potential Goods and Services Tax (GST) evasion linked to these entities.

Detained Individuals and Fugitive Son

Ten individuals, including the alleged mastermind Mahfooz known as Pappu Chhuri, have been detained, while efforts continue to locate his fugitive son Faiz, for whom a ₹25,000 reward has been offered.

Distribution of Suspicious Accounts

The largest cluster of suspicious accounts—86—was traced to HDFC Bank, with 25 linked to City Union Bank, 15 each at Axis Bank and IDBI Bank, 10 at Yes Bank, eight at IDFC Bank, and five each at Canara Bank, Bandhan Bank, and Bank of Baroda.

• HDFC Bank: 86 accounts
• City Union Bank: 25 accounts
• Axis Bank: 15 accounts
• IDBI Bank: 15 accounts
• Yes Bank: 10 accounts
• IDFC Bank: 8 accounts
• Canara Bank: 5 accounts
• Bandhan Bank: 5 accounts
• Bank of Baroda: 5 accounts

Account Analysis and KYC Scrutiny

Investigators are analyzing transaction histories, beneficiary details, and Know Your Customer (KYC) documentation to determine the legitimacy of these accounts. A critical finding during the inquiry was that several accounts were opened under individuals who claimed no awareness of the high-value transactions conducted through them. Authorities are assessing whether standard KYC protocols were adhered to and whether bank personnel or third parties assisted in the creation or management of these accounts.

Emergence of the Network

The network emerged during the examination of a ₹24 lakh robbery reported on February 16, 2026. Initially perceived as a conventional theft case, it led to the discovery of broader financial misconduct.

Related Developments and Regulatory Actions

In a related development, investigators probing another case tied to Shivrajpur identified over 50 additional accounts allegedly used to process approximately ₹225 crore in suspected cyber fraud proceeds. These accounts were reportedly established at branches of multiple public sector banks. Regulatory bodies have issued requests to the affected financial institutions for detailed account records, KYC data, and transaction logs.

Conclusion and Ongoing Investigation

Law enforcement confirmed that the investigation remains active, with further legal measures pending based on collected evidence. Investigators are mapping connections between the suspect accounts, shell firms, financial transactions, digital records, and the broader money laundering framework to identify all participants and dismantle the syndicate.

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