Bengaluru police bust ₹150 crore laundering racket

Bengaluru Police have arrested four individuals involved in a massive money laundering racket linked to over 100 cybercrime cases across India. The gang allegedly facilitated the transfer of illicit funds through mule accounts, laundering more than ₹150 crore by creating shell companies and renting out these accounts to cybercriminals.

The accused have been identified as Lakshmish N (33), Prakash H (43), Sunil Kumar (45), and Puttaswamyya (54), all from Bengaluru and Ramanagara district. According to Commissioner Seemanth Kumar Singh, Prakash and Sunil Kumar had previously been arrested in a related fraud case.

Inspector Umesh Kumar explained that the gang lured unsuspecting individuals with promises of employment or cash, collecting their KYC documents to register shell firms. They opened hundreds of current accounts in the names of these companies, each bundled with SIM cards, cheque books, passbooks, and internet banking access. These packages were then leased to cybercriminals, providing what police called a “banking service for criminals.” The gang reportedly received 20–30% commission from each fraudulent transaction.

Police seized one laptop, four mobile phones, cheque books from multiple banks, and documents linked to the shell companies. So far, 357 mule accounts have been identified as part of the ongoing investigation, with more expected to emerge. Authorities suspect that the racket was supported by insiders, including possible involvement of bank staff in opening and managing these fraudulent accounts. The police are expanding the investigation to track higher-level operatives behind the sophisticated and organized scam.