TGCSB Takes Over ₹1,000-Crore Mule Account Fraud Probe in Telangana

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The Telangana Cyber Security Bureau (TGCSB) is investigating a ₹1,000-crore mule account fraud case in Khammam, with over 50 suspects facing potential arrest.

Specialized Unit Established for Major Cybercrime Cases

The Telangana Cyber Security Bureau has assumed responsibility for a ₹1,000-crore mule account fraud investigation in Khammam, establishing a specialized investigative unit as over 50 suspects face potential arrest. The bureau has taken over two major cybercrime cases involving a network of mule bank accounts used to channel illicit funds.

Case Transfer and Dedicated Team Formation

Following directives from the state’s Director General of Police, the cases were transferred from V.M. Banjara and Sathupalli police stations to the TGCSB, which has formed a dedicated team under Deputy Superintendent of Police K.V.M. Prasad.

Investigation Origin and Key Orchestrators

The investigation originated from a December 2024 complaint filed by Modugu Sai Kiran, a resident of Thumburu village in Sathupalli mandal, who alleged he was deceived into opening bank accounts in 2022 under false promises of employment. Authorities identified Udatneni Vikas Choudhary, his spouse Boppana Nagapriya, associate Adapa Rama Venkata Charan, and Potru Praveen as key orchestrators of the scheme, which operated between 2021 and 2025.

Targeting Vulnerable Individuals

The group targeted unemployed individuals and daily-wage laborers, offering job opportunities, business ventures, and financial incentives to recruit account holders. Once accounts were established, the perpetrators allegedly collected internet banking credentials, cheque books, and debit cards, compensating account holders with sums ranging from ₹3,000 to ₹10,000 based on account type.

Methods of Fund Laundering

Funds were then funneled through interconnected mule accounts, converted into cryptocurrency for international transfers, or withdrawn as cash. Investigators uncovered evidence of call centers operating in Cambodia and Hyderabad, collaborating with foreign fraudsters to exploit victims through deceptive schemes such as matrimonial offers, reward points, gaming, betting, stock market investments, and cryptocurrency trading.

Coordinated Operation and Arrests

Law enforcement executed a coordinated operation on January 11, 2026, resulting in 18 arrests following the initial detention of Potru Praveen in December 2024. Udatneni Vikas Choudhary, whose attempts to secure anticipatory bail were denied, was later detained, bringing the total arrests in the case to 20 by early 2026. At that time, six suspects, including Meda Bhanupriya and her relative Meda Satish, remained at large.

Financial Scale and Systemic Vulnerabilities

Financial records linked to the accused revealed transactions totaling ₹547 crore prior to the TGCSB’s involvement, though investigators now estimate the network’s total scale exceeds ₹1,000 crore. A separate case under the same investigation highlights a broader crackdown on mule account networks across Telangana.

Operation Crackdown 1.0 and Broader Implications

During Operation Crackdown 1.0, the TGCSB arrested 208 individuals, including bank employees, software engineers, lecturers, and students, in connection with a ₹100-crore mule account operation spanning 1,549 linked FIRs. Over 19 bank branches were found to have more than 20 mule accounts each, underscoring systemic vulnerabilities in Know Your Customer (KYC) verification processes.

Prof. Triveni Singh, a former IPS officer and cybercrime specialist, emphasized the risks of sharing banking details for financial incentives, stating that even minor lapses could lead to severe legal consequences.

Ongoing Probe and International Connections

The TGCSB continues its probe, analyzing banking records, digital evidence, and suspected shell entities to trace the network’s interstate and international connections.