Bank official under scanner over mule account used in ₹3.74-cr cyber fraud

The funds were allegedly deposited into the mule account by 10 victims of cyber fraud via 11 transactions and were later transferred to other accounts

MUMBAI: The Central Bureau of Investigation (CBI) is probing the role of a former branch manager of a private bank in connection with a cyber fraud case wherein proceeds of crime worth ₹3.74 crore were received in a mule bank account on July 2 last year. The funds were allegedly deposited into the mule account by 10 victims of cyber fraud via 11 transactions and were later transferred to other accounts, CBI officials told Hindustan Times.

(Shutterstock)

On March 26, the CBI’s Mumbai unit obtained prior approval required under the Prevention of Corruption Act to probe the role of the bank official under scanner, S Sharma, with respect to the mule account under scanner, CBI officials said.

According to the CBI, alleged fraudsters induced victims to transfer funds into multiple mule accounts via sophisticated, deceptive methods such as impersonation, digital arrest, customs fraud, online financial fraud, identity theft, phishing and cyber bullying. The mule account in which ₹3.74 crore got deposited on July 2 last year was in the name of a cargo-and courier firm.

On July 4, 2025, the CBI’s Mumbai unit registered a First Information Report (FIR) against the firm, its director S Palande, unknown cyber fraudsters, intermediary agents and unknown public and private bank officials. The accused were booked for criminal conspiracy, cheating by use of computer resources, forgery for the purpose of cheating, and abuse of official position by public servants under relevant sections of the Information Technology Act, the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.

Palande was subsequently arrested by the CBI and while six accused persons, including the consulting firm owner, were charge-sheeted last year, the probe was still underway with regard to roles of public servant/s and the fund trail of the proceeds of crime, including foreign remittances, CBI officials said.

The CBI probe so far has revealed that funds worth ₹3.8 lakh were transferred from the mule account under scanner to a Delhi-based individual’s account, following which it was transferred to the account of a firm based in the United Arab Emirates, W Consulting. On March 17 and 18 this year, the CBI questioned an India-based director of the consulting firm and seized two mobile phones from his possession to examine “suspicious chats” linked to the case, CBI officials said. During his examination, the businessman denied any wrongdoing or links with the case.

During searches conducted in Mumbai and other cities in July last year, the CBI had seized several incriminating documents and digital evidence including mobile phones, an iPad, bank account documents, transaction details, and copies of Know Your Customer-linked documents.