Gadag: Authorities in Karnataka have dismantled a cyber fraud network accused of exploiting students by opening bank accounts in their names and using them to channel illicit funds. Five individuals have been arrested in connection with the case, police confirmed.

The operation, uncovered in Gadag district, involved the seizure of 11 mobile phones and eight “bank kits,” including passbooks, ATM cards, SIM cards, and online banking credentials.

Students Targeted With Scholarship Promise

Investigators revealed that the accused allegedly targeted students by offering assistance in securing government scholarships. Under this pretext, they persuaded students—particularly those staying in hostels—to open bank accounts.

Once the accounts were created, the suspects reportedly took control of all associated banking materials, including login details and SIM cards, effectively gaining full access.

Small Deposits Used to Build Trust

To avoid suspicion, the accused allegedly deposited around ₹2,000 into each account during the setup phase. This initial transaction was used to create legitimacy and reassure victims before the accounts were misused.

Police believe these accounts were later used as “mule accounts” to route money obtained from cyber fraud operations conducted across multiple regions.

Arrests Made During Goa Operation

The investigation began earlier this month and quickly led authorities to track the suspects’ movements to Goa. Police intercepted the group while they were allegedly attempting to hand over collected bank kits to other members of the network.

The main accused—identified as Raja (23) and Vakdoth Vakeel (24)—are residents of the Vijayanagara district. During interrogation, they reportedly admitted to coordinating with other associates for commission-based transactions.

Additional Suspects and Seizures

Further arrests included individuals working and residing in Goa, such as a hotel employee and a DJ. Authorities also seized multiple bank kits linked to accounts opened in different districts, including Haveri and Gadag, primarily in branches of Bank of Maharashtra.

One key suspect remains absconding, and efforts are ongoing to track additional members of the network.

Larger Network Under Investigation

Officials suspect the operation may be part of a wider, multi-state cybercrime network. Forensic analysis of seized devices and bank transactions is underway to determine the scale of the fraud and identify links to other cases.

Cybersecurity experts note that the use of mule accounts has become a widespread tactic in financial fraud schemes. By using accounts opened in the names of unsuspecting individuals, criminals can obscure money trails and evade detection.

Rising Concern Over Student Exploitation

The case highlights a growing trend where students and vulnerable individuals are manipulated into unknowingly participating in financial crimes. Authorities have urged the public to remain cautious and avoid sharing banking details or opening accounts on behalf of others without full understanding.

Investigations are ongoing, and more arrests are expected as police continue to unravel the network.

Warangal police have uncovered a sophisticated land registration fraud worth ₹3.90 crore, revealing how criminals exploited technical loopholes in Telangana’s online land registration systems to divert government revenue while generating documents that appeared fully legitimate.

What initially looked like routine land registrations across multiple districts turned out to be a coordinated digital scam that manipulated official fee payments on state-run portals. The investigation has so far led to 15 arrests and exposed serious vulnerabilities in the digitisation of land records.

Fraud Leveraged Weaknesses in Online Land Portals

According to police, the accused exploited gaps in the Dharani portal and its successor, the Bhu Bharathi platform, which are used for land registration and fee payments in Telangana.

Warangal Commissioner of Police Sunpreet Singh said the network used a mobile application and technical expertise to tamper with online challans at the payment stage. The accused allegedly paid reduced registration fees to the government but altered the digital receipts to reflect higher amounts. These forged challans were then submitted during land registrations, allowing transactions to proceed without raising immediate suspicion.

The manipulated receipts were routed through intermediaries and presented at Tahsildar offices, embedding the fraud within normal administrative processes.

Over 1,000 Documents Manipulated, ₹3.90 Crore Loss Estimated

Police have registered 22 cases so far—seven in Jangaon district and 15 in Yadadri-Bhuvanagiri district. Investigators estimate that at least 1,080 land documents were processed using forged payment receipts, causing a direct loss of approximately ₹3.90 crore to the state exchequer.

During raids, law enforcement seized ₹63.19 lakh in cash, property documents valued at nearly ₹1 crore, a car, two laptops, five desktop computers and 17 mobile phones. Authorities confirmed that nine additional suspects are still absconding, and further arrests are expected.

Middlemen and Service Centres Played Key Role

Investigators identified three individuals from Yadadri district—Pasunari Basavaraju, Jella Pandu and Maheshwaram Ganesh—as key conspirators in the operation.

Police said the trio worked with staff from Mee-Seva centres and private computer service centres operating in Jangaon, Yadadri-Bhuvanagiri and Nalgonda districts. The group allegedly recruited middlemen who facilitated agricultural land registrations using forged digital documents, earning commissions of 10% to 30% per transaction.

These intermediaries acted as the bridge between landowners, service centres and the falsified online records, enabling the fraud to scale across districts.

Authorities Flag Risks in Rapid Digitisation

Senior officials said the case underscores how digitisation—while designed to improve transparency and efficiency—can create new opportunities for technology-driven fraud if systems are not adequately secured.

Commissioner Sunpreet Singh praised the investigation team for dismantling the network, specifically commending officers from the West Zone, Jangaon district and Raghunathpally division for their coordinated effort. Cash rewards have been announced for the officers involved.

Police said financial trails are still being examined to identify additional beneficiaries and recover the remaining diverted funds. The investigation remains ongoing.

The Enforcement Directorate (ED) has uncovered a massive cache of unaccounted wealth during a series of searches linked to an alleged illegal mining and money laundering network in Odisha, officials said on Friday.

According to sources, the Bhubaneswar Zonal Office of the ED conducted coordinated search operations under the Prevention of Money Laundering Act (PMLA), 2002, recovering an almirah packed with cash worth several crores of rupees, along with luxury vehicles and key documents connected to mining leases and immovable properties.

The searches form part of an ongoing investigation into suspected large-scale laundering of proceeds generated from illegal mining activities across the state.

Multiple Locations Searched Under PMLA

The agency carried out searches at several premises associated with individuals and business entities believed to be part of a wider illegal mining syndicate. Acting under Section 17 of the PMLA, which authorizes search and seizure of assets suspected to be proceeds of crime, investigators reportedly seized:

• Large quantities of liquid cash stored in an almirah
• High-end luxury vehicles with unclear or concealed ownership details
• Documents related to land, real estate holdings, and financial transactions
• Mining lease agreements and records indicating possible regulatory breaches

Officials believe these materials may offer crucial evidence of how illicit mining revenues were generated, layered, and concealed.

Mining Proceeds Allegedly Laundered Through Cash and Assets

Investigators suspect that illegal extraction and transportation of minerals were carried out in violation of environmental regulations, mining laws, and lease conditions. The profits from these activities were allegedly converted into cash and assets to avoid detection by financial regulators.

The recovery of substantial physical cash—rather than funds routed through formal banking channels—has heightened concerns of deliberate attempts to bypass financial oversight and anti-money laundering controls.

The ED is examining whether the seized funds originated directly from illegal mining operations or were routed through shell entities, contractors, or benami arrangements.

Luxury Vehicles and Properties Under Investigation

Among the significant finds were luxury vehicles believed to have been registered under proxy names or complex ownership structures, a tactic frequently used to obscure the identity of the real beneficiaries.

Property-related documents and mining agreements seized during the raids are now under detailed scrutiny to determine:

• Whether mining leases were fraudulently obtained, misused, or unlawfully extended
• Whether real estate purchases were financed using proceeds of crime
• The possible involvement of public officials, facilitators, or intermediaries

Officials said forensic audits and document verification exercises will be carried out to trace the complete money trail.

Part of Wider Push Against Illegal Mining

Odisha, one of India’s most mineral-rich states, has long faced allegations of illegal mining, environmental damage, and loss of public revenue. In recent years, central agencies have stepped up action against mining syndicates where violations overlap with financial crimes and money laundering.

Under the PMLA framework, assets identified as proceeds of crime can be provisionally attached, followed by adjudication and eventual confiscation if the accused are convicted.

Investigation Ongoing

ED sources indicated that further questioning and summons are likely as investigators analyze the seized cash, documents, and digital records. The agency may also move to provisionally attach properties and vehicles linked to the suspected laundering network.

No arrests have been announced so far, and officials emphasized that the probe is still at a critical evidence-gathering stage.