Branch managers, 37 mule accounts & Rs 7.3 crore racket: How labourers were lured with loan promises only to have their documents misused. Police probe Chinese link

Two branch managers of a private bank are under investigation for their alleged role in a mule-account network suspected of routing Rs 7.3 crore in proceeds from cybercrime. Six people have been arrested in the case, while one of the managers is absconding, according to a TOI report. Police are examining suspected cryptocurrency transactions linked to the racket and a possible connection with a Chinese national. Investigators have identified around 37 suspected mule accounts linked to 99 cybercrime complaints registered across the country.

How the racket came to light

The investigation began after police examined suspicious bank accounts at the private bank’s Tri Nagar branch. Investigators allegedly found that some account holders had never visited the branch, while the addresses provided for several accounts could not be verified.

Further scrutiny led police to identify 17 additional suspicious accounts. According to the investigation, photographs and Know Your Customer documents for several accounts had allegedly not been collected through the required live-verification process. Some of the addresses recorded in the bank documents were also found to be non-existent.

Police subsequently analysed mobile numbers, email addresses and devices linked to the accounts. The technical investigation led them to Mayank Kapoor, who is suspected of operating the mule-account network. He was arrested from Baba Haridas Nagar.

Accused used labourers documents

During questioning, Kapoor allegedly told investigators that he collected identity documents and photographs from daily-wage labourers by promising to help them obtain loans. Police suspect the documents were then used to open bank accounts without the individuals' knowledge of how the accounts would be used.

Shobhit Aggarwal, the branch manager at the bank's Saraswati Vihar branch, is accused of facilitating account openings without the physical presence of account holders and using forged signatures. He allegedly introduced Kapoor to Sushant Kumar, the branch manager at the Tri Nagar branch, allowing the operation to extend across both branches.

Four sales staff members: Manoj, Ankur, Fatma and Pankaj, are also accused of processing the accounts, which were allegedly approved by the branch managers.

Cryptocurrency and cybercrime links

Investigators have traced approximately 37 suspected mule accounts associated with 99 cybercrime complaints filed across India. Nearly Rs 7.3 crore was allegedly credited to these accounts.

Police suspect that a portion of the money was shared with bank officials, while the remaining proceeds were converted into USDT, a cryptocurrency linked to the US dollar, through Trust Wallet. Investigators are probing the suspected digital-asset transactions and examining whether a Chinese national had any connection with the network.

Police arrests and seizures

Aggarwal and the four sales staff members were arrested after investigators said they had gathered sufficient evidence. Kapoor has also been arrested, taking the total number of people arrested in the case to six. Kumar, the Tri Nagar branch manager, remains absconding, according to the TOI report.

During the investigation, police seized seven mobile phones, a laptop, seven cheque books, Rs 60,000 in cash, around 150 grams of gold, 55 passport-size photographs, 11 SIM cards, 63 Aadhaar cards, 60 PAN cards and seven debit cards. The investigation is continuing, with police examining the suspected role of the bank officials, the movement of the alleged cybercrime proceeds and the possible cryptocurrency links.