Rs 1000 crore mule accounts scam exposes massive banking fraud, CBI charges 19
New Delhi:
Rs 1000 crore mule accounts scam has come to light after the Central Bureau of Investigation (CBI) registered an FIR against 19 individuals, including a branch head of Punjab & Sind Bank, for allegedly opening and operating mule accounts used to launder over Rs 1,084 crore generated from cybercrime and other illicit activities.
According to officials, the CBI action follows a detailed preliminary enquiry that uncovered a sophisticated network of forged documents, non-existent companies, and deliberate violations of banking norms.
Rs 1000 crore mule accounts scam uncovered through CBI preliminary enquiry
The CBI stated that its preliminary enquiry revealed 13 mule accounts opened in the names of fictitious firms using forged and fabricated documents. These accounts were allegedly created at the Government Girls Senior Secondary School Branch of Punjab & Sind Bank in Sri Ganganagar, Rajasthan.
At the centre of the investigation is Vikas Wadhwa, who was serving as the branch head at the time the accounts were opened.
Officials said the firms existed only on paper and were created solely to facilitate the opening and operation of these current accounts.
How the Rs 1000 crore mule accounts scam was executed
According to the FIR, multiple accused individuals arranged:
Forged and fabricated KYC documents
Fake rent agreements
False business addresses
Fabricated supporting records
These documents were used to bypass mandatory Know Your Customer (KYC) and due diligence requirements.
Role of bank officials in Rs 1000 crore mule accounts scam
The CBI alleged that the accounts were opened with the active connivance of bank officials, who violated standard operating procedures.
“The said accounts were opened with criminal conspiracy and deliberate violation of KYC norms and due diligence requirements,” the FIR stated.
Fake site visit reports and business verification records were allegedly prepared by bank officials to falsely establish the legitimacy of the non-existent firms.
What is a mule account and why it matters in the Rs 1000 crore mule accounts scam
A mule account is a bank account opened using falsified or stolen identity documents and is primarily used to transfer, layer, or launder illegal money.
In the Rs 1000 crore mule accounts scam, investigators found that these accounts were used to:
Route cybercrime proceeds
Layer illicit funds to avoid detection
Transfer money across banking channels and digital platforms
In many cases, such accounts are opened without the genuine knowledge of the individuals whose identities are misused.
Rs 1000 crore mule accounts scam involved massive financial transactions
The CBI alleged that transactions worth thousands of crores were routed through these mule accounts.
“These accounts were used to route, layer and transfer proceeds of cybercrime and other illicit activities. The total transaction amount involved is approximately Rs 1,084 crore,” the FIR stated.
The scale of transactions raised red flags during internal scrutiny, prompting the agency’s deeper investigation.
Non-existent firms central to Rs 1000 crore mule accounts scam
Investigators found that all 13 firms in whose names the accounts were opened were completely non-existent.
Fake firms created solely for mule accounts
No physical business operations
No legitimate commercial activity
Forged incorporation and address records
The CBI said these shell entities were created only to open current accounts and facilitate illegal money movement.
CBI alleges personal gains and reputational loss in Rs 1000 crore mule accounts scam
The FIR alleges that the accused individuals, including the branch head, made illicit financial gains through the operation of mule accounts.
The agency also noted that the scam caused:
Wrongful reputational loss to Punjab & Sind Bank
Exposure to potential regulatory penalties
Risk of financial losses due to non-compliance
“The accused persons have exposed the bank to the risk of penalties, placing it in a position where it is likely to suffer financial loss,” the FIR stated.
Cybercrime funds at the core of Rs 1000 crore mule accounts scam
According to investigators, the laundered funds originated primarily from:
Cyber fraud
Online financial scams
Other illicit activities
The use of mule accounts allowed criminals to obscure the money trail, making detection and recovery more difficult.
Rs 1000 crore mule accounts scam raises concerns over banking oversight
The case has once again raised serious concerns about:
Internal controls in public sector banks
Enforcement of KYC and AML norms
Accountability of senior banking officials
Experts say such cases highlight the urgent need for stronger real-time monitoring systems and stricter penalties for compliance failures.
CBI investigation into Rs 1000 crore mule accounts scam continues
The CBI has indicated that further investigation is underway and additional arrests or charges may follow as financial trails are examined in detail.
Digital records, transaction logs, and communication data are being analyzed to identify:
Additional beneficiaries
Possible international links
Wider cybercrime networks
Rs 1000 crore mule accounts scam highlights growing cyber-financial threat
With cybercrime on the rise, the Rs 1000 crore mule accounts scam underscores how banking vulnerabilities can be exploited at scale.
Authorities believe that dismantling such networks is critical to protecting the financial system and maintaining public trust in banks.
