Delhi police have arrested Pabitra Kumar Biswal, a Deputy Manager at National Urban Cooperative Bank, for allegedly facilitating a mule account used in cyber fraud. The account processed approximately Rs 67.92 crore linked to 159 cyber fraud complaints.
The arrest highlights systemic failures in banking procedures and KYC compliance, potentially enabling large-scale cyber fraud. It underscores the risks associated with mule accounts and the need for stricter oversight in financial institutions to protect consumers and prevent illicit financial flows.
Delhi Police's Cyber Police Station in East District has arrested Pabitra Kumar Biswal, a 42-year-old Deputy Manager at the National Urban Cooperative Bank, in connection with a cyber fraud case involving a mule account. The account, allegedly facilitated by Biswal, processed approximately Rs 67.92 crore and is linked to 159 cyber fraud complaints filed across the country.
According to officials, the investigation revealed that the account was opened using the identity of Shailendra Kumar Yadav without his knowledge or consent. Police found that Yadav's identity and credentials were misused, and his signatures on the account opening documents did not match his own. The account, registered under the name Mahakal Enterprises, was purportedly opened in Yadav's name.
During the investigation, it was discovered that Biswal allegedly bypassed mandatory Know Your Customer (KYC) norms and verification procedures when opening the account. Bank records indicated that Biswal authorized the verification and approval of the account opening process. Biswal reportedly admitted during interrogation that he had not physically verified the firm or visited the address provided in the account opening documents, indicating a lack of proper customer due diligence.
Two mobile phones were recovered from Biswal. The case came to light during a scrutiny of complaints on the National Cyber Crime Reporting Portal (NCRP), where the bank account repeatedly appeared in cyber fraud cases. An FIR was registered under relevant provisions of the Bharatiya Nyaya Sanhita (BNS). Police are continuing their investigation to identify other beneficiaries and individuals involved in the broader cyber fraud network.