Illicit money worth ₹1,000 crore sent through mule accounts; CBI files case against bank branch head, 18 others

The CBI has filed an FIR against a branch head of Punjab and Sind Bank and 18 others for allegedly opening accounts which were used to launder and hide money. ₹Officials said on Friday that Rs 1,000 crore was earned from cyber crime and other illegal activities.

He said the agency has taken action based on its preliminary investigation, which has revealed 13 accounts opened in the name of non-existent companies using forged documents.

The agency found that several persons arranged for forged and fabricated KYC documents, false rent agreements and other fabricated supporting documents to open accounts in the Government Girls Senior Secondary School branch of the bank in Sriganganagar, Rajasthan. Vikas Wadhwa was the head of that branch.

“The said accounts were allegedly opened by violating KYC norms, due diligence requirements and standard operating procedures in collusion with unknown bank officials and in criminal conspiracy,” the agency has alleged in the FIR.

A mule account – which is set up using false identity documents – is primarily used to transfer or launder illicit funds with or without the knowledge of the individuals whose details have been used to open the account.

“Fake site visit reports and business verifications were created by bank officials to facilitate opening of these current accounts in the name of fake firms,” the agency’s FIR alleged.

The Central Investigation Agency said that all the 13 companies in whose name the said current accounts were opened were non-existent and were merely formed to open and operate these current accounts using forged and fabricated documents.

The FIR alleges that it was also revealed that significant transactions worth thousands of crores of rupees were made through these mule accounts through various banking channels and digital platforms.

“These accounts were subsequently used to route, layer and transfer the proceeds of cyber-crime and other illegal activities. The transaction amount involved…is approx ₹1084.00 crore,” the agency alleged.

The CBI said the accused persons, including Wadhwa, made illegal profits for themselves and caused “wrongful reputational damage” to Punjab & Sind Bank.

“Further, if allegations of money laundering are made, the accused persons have also exposed the Bank to the risk of penalties, thereby placing the Bank in a position where it is also likely to suffer financial loss on account of such penalties,” the CBI FIR alleges.