How cyber-fraud syndicate used 20 shell companies for a Rs 180-crore scam

Delhi Police have busted a major cyber-fraud syndicate operating through a network of shell companies and mule bank accounts, arresting two key accused involved in siphoning off proceeds from online scams amounting to nearly Rs 180 crore, an official said on Friday.

The racket was uncovered by the New Delhi district police under Operation “Cy-Hawk”, a special drive aimed at disrupting organised cybercrime networks.

Investigators said the syndicate had floated at least 20 shell companies to receive and layer money cheated from victims across the country through various cyber-fraud activities.


"The case came to light after several cybercrime hotspots were flagged in New Delhi district during a scrutiny of complaints on the National Cyber Crime Reporting Portal (NCRP). Investigators found that an account with a private bank was repeatedly receiving fraud-linked funds," a senior police officer said.

The account was registered in the name of a director of a private limited company, located at Barakhamba Road in Connaught Place. A preliminary inquiry suggested that it was being used as a mule account to receive and transmit cheated money, the officer said.

Based on a complaint, an FIR was registered on November 19 last year and an investigation was launched to trace those involved.

During the probe, police found that the bank account was registered in the name of Rajesh Khanna, who had been made a director of the company. Khanna joined the investigation and revealed that he had incorporated the firm and opened its bank account at the behest of two associates — Sushil Chawla and Rajesh Kumar Sharma — who controlled the movement of funds.

Khanna further disclosed that the duo had facilitated the creation of at least 20 other companies to siphon off proceeds from cyber frauds. Police scrutiny of these firms and their bank accounts uncovered a complex layering mechanism used to route cheated money through multiple channels.

"A total of 176 cyber-fraud complaints, involving transactions amounting to approximately Rs 180 crore, were found linked to accounts operated by these shell companies. The funds were traced to victims spread across multiple states, indicating the nationwide scale of the syndicate," the officer said.

He further said that during the course of the investigation, police learnt that Khanna had died at a hotel in Noida. Meanwhile, Chawla and Sharma initially joined the investigation but failed to cooperate and avoided answering questions.

"They also evaded notices issued to them and withheld information regarding the modus operandi. Suspicious chats recovered from their mobile phones pointed to their active control over the shell company accounts," the officer added.

Based on digital evidence and financial trails, police concluded that Khanna was being used as a front or pawn at the behest of the two accused. During preliminary interrogation, the arrested men disclosed that they were working for a person identified as Pawan Ruia, who has been linked to similar cyber-fraud cases in West Bengal.

Sushil Chawla (58), a resident of Greater Noida, and Rajesh Kumar (39), a resident of Gurugram, were arrested in the case. Police have seized two mobile phones and a laptop from their possession.

The accused have been remanded to police custody for further investigation.