Surat: In a significant crackdown on organised financial fraud, Surat Police have arrested five individuals, including four employees of private banks and a SIM card distributor, in connection with a ₹5.75 crore land fraud case involving mule bank accounts and manipulated financial transactions.

Investigators say the accused played a key role in enabling the creation and operation of fraudulent accounts used to route and conceal illicit funds linked to a disputed land deal.

Fraud Linked to Fake Land Transaction and Banking Manipulation

The case revolves around a suspicious land transaction in which forged documents and manipulated financial channels were allegedly used to transfer crores of rupees. Authorities suspect that the sale deed was executed through a power of attorney arrangement that was misused to bypass proper verification processes.

The investigation suggests that the fraud network relied heavily on mule bank accounts—accounts created or operated using false or manipulated identity details—to move money without triggering immediate detection.

Bank Employees Allegedly Facilitated Mule Account Creation

Police have identified the arrested banking personnel as employees associated with branches of Yes Bank and IDBI Bank in Gujarat.

According to investigators, these insiders allegedly helped open and operate suspicious accounts by weakening or bypassing standard customer verification procedures. The accounts were then used to channel funds linked to the fraudulent land transaction, creating multiple layers of transfers to obscure the money trail.

Authorities believe that internal access to banking systems played a crucial role in making the operation appear legitimate on the surface.

SIM Cards Used to Enable Digital Banking Access

Along with banking staff, a SIM card distributor has also been arrested for allegedly supplying mobile numbers used in the fraud. These SIM cards were reportedly linked to mobile banking activations, OTP verification systems, and communication channels tied to the mule accounts.

Investigators say the use of multiple mobile identities helped the network manage transactions and avoid early detection by financial monitoring systems.

Weak Verification and Digital Oversight Under Scrutiny

Preliminary findings indicate irregularities in account opening documentation, customer due diligence records, and transaction monitoring logs. Police are now examining digital communications, banking records, SIM activation data, and transaction trails to reconstruct the full network of the scam.

Officials suspect that the fraud may extend beyond the initial arrests, with additional individuals potentially involved in facilitating or benefiting from the scheme.

Expanding Concern Over Mule Account Networks

The case highlights the growing threat posed by organised mule account networks in India’s financial crime landscape. Such accounts are often created using fake or manipulated identities and are widely used in scams involving land fraud, cybercrime, and investment fraud.

Experts note that insider involvement significantly increases the sophistication of such operations, as banking employees can exploit system knowledge, compliance loopholes, and transaction thresholds to evade detection.

Investigation Continues

Surat Police continue to interrogate the accused and trace financial flows connected to the ₹5.75 crore transaction. Authorities are also coordinating with banking regulators and financial intelligence units to identify the ultimate beneficiaries and determine whether the network extends across multiple states.

Further arrests are not ruled out as digital evidence and property records are analysed in detail.