Key Accused in ₹8.1 Crore Cyber Fraud Case Linked to Ex-Punjab IG Dies in Patiala Hospital

Chander Kant, a prime accused in the ₹8.1 crore cyber fraud case connected to retired Punjab Police IG AS Chahal, passed away at Government Rajindra Hospital in Patiala on January 9 due to complications from diabetes. The 40-year-old suspect, who had been arrested in Maharashtra and was under judicial remand, died around 4 PM, adding a dramatic twist to the ongoing high-profile investigation.

Twist in a High-Profile Cybercrime Case

Kant was among seven individuals apprehended in Maharashtra, including Lakhan Srichand, Somnath, Ranjit Nambardar, Prateek Uttam, Ashish Kumar Pandey, and Mohammad Sharif. The group allegedly facilitated a network of SIM card activations in India, which were then sent to the UAE to carry out phishing, OTP scams, and banking fraud. Patiala Cyber Crime Police have registered an FIR under multiple sections of the Indian Penal Code and the IT Act, including conspiracy, cheating, forgery, and impersonation.

The arrests came shortly after Chahal reportedly attempted self-harm at his Patiala residence on December 22, 2025. The gang’s operations are believed to have caused financial losses totaling ₹8.1 crore. Kant’s health deteriorated during a court remand hearing on January 9, necessitating hospitalization. A post-mortem examination was scheduled for January 10.

Unraveling an International SIM Fraud Network

Investigations indicate that Kant played a central role in sourcing SIM cards domestically, bypassing Know Your Customer (KYC) regulations through intermediaries, and shipping them abroad to UAE-based fraud syndicates. Authorities note that Punjab has increasingly become a hub for such cyber fraud activities, with over 15,000 complaints linked to international scams reported in 2025 alone.

The probe is examining whether Chahal’s involvement was unwitting or coerced, as investigators explore the retired IG’s potential connection to the fraud network.

Police Investigations Continue Amid Setback

Kant’s death has shifted the focus of investigators to the remaining six accused, who remain in judicial custody. Police are tracing financial transactions, conducting CDR (Call Detail Record) analysis, and freezing assets linked to the syndicate. Raids on SIM vendors have intensified as part of a nationwide crackdown under recent Telecom Act amendments.

A forensic audit of Chahal’s electronic devices is ongoing. Meanwhile, Chahal’s family maintains that he had no deliberate involvement in the fraud, citing fears of extortion and coercion.

Broader Implications for Cybercrime Control

The case highlights the pervasive use of SIM mule networks in financial fraud, which account for nearly 70% of such crimes. It also raises concerns about the health risks faced by suspects with chronic illnesses while in custody. Additionally, the investigation is probing possible insider collusion within the Punjab police force, signaling broader challenges in combating organized cybercrime.