Background and Timeline
In January 2026, Udhna Police in Surat, Gujarat, arrested four individuals in connection with a massive cyber fraud racket involving the supply of mule bank accounts and SIM cards to an international cybercrime syndicate. The scam, estimated at ₹1,550 crore, was uncovered following a routine vehicle check on May 21, 2025, which led to the discovery of multiple PAN cards and a proprietor’s stamp. This initial find unraveled a vast network engaged in opening bank accounts with forged identities and supplying account kits to overseas operators.
Modus Operandi
The network specialized in creating and maintaining mule accounts—bank accounts opened in the names of unsuspecting or proxy individuals. These accounts were used to receive and launder money generated through online frauds targeting victims across multiple countries. The proceeds were routed through a Bandhan Bank account held by Jagdish Chandra Choksi, allegedly operated online by Abdul Rab Khatia. Withdrawn funds were deposited at the office of Chirag alias Charlie Sutaria and Pravin Gadhia, who converted the cash into cryptocurrency (primarily USDT) and transferred it back to the international syndicate, often linked to Chinese cyber fraud networks.
Number of Victims and Financial Impact
The scam involved at least 164 mule bank accounts and transactions totaling ₹1,550 crore. The police seized ₹1.92 crore in cash, 288.96 grams of gold, 10.8 kg of silver, 413.37 carats of rough diamonds, and four currency counting machines. The sheer volume of accounts and transactions suggests hundreds, if not thousands, of victims, both in India and abroad.
Investigation Progress and Agencies Involved
The investigation, led by Udhna Police, has resulted in 29 arrests to date, including eight bank officers. A voluminous chargesheet of 1.5 lakh pages has been filed, reflecting the complexity of the case. Police are coordinating with central agencies and financial institutions to trace international linkages and identify additional beneficiaries. The accused earned commissions of ₹300–₹350 for every ₹1 lakh transferred through the mule accounts. The investigation is ongoing, with further arrests expected as the probe expands.
Arrests and Suspects
The four most recent arrests include a money transfer agent, two managers of an angadia (traditional courier) firm, and an individual with suspected links to a Chinese cyber fraud network. All were remanded to police custody for further questioning and evidence recovery.
Broader Implications and Trends
This case highlights the growing challenge posed by organized cybercrime networks exploiting gaps in banking and telecom systems. The use of mule accounts, forged documents, and cryptocurrency for cross-border money laundering is a recurring theme in large-scale cyber frauds. The involvement of Chinese syndicates and the conversion of proceeds into USDT reflect the internationalization of cybercrime and the need for enhanced regulatory oversight and international cooperation.