In a significant breakthrough, the cybercrime police have arrested a 39-year-old man from Gujarat for allegedly supplying mule bank accounts to a China-based cybercrime syndicate involved in large-scale financial fraud across India.

The accused, Digvijaya Singh Sisodia, also known as Mayur, was arrested on Tuesday near Mayura Hotel junction close to Anand Rao Circle after investigators received a WhatsApp video tip-off from an informant.

Fake company used to procure identity documents

According to police, Sisodia had floated a fake company to fraudulently collect mobile numbers and financial documents including Aadhaar and PAN cards from multiple individuals. These documents were then used to open mule bank accounts that facilitated the routing and withdrawal of money siphoned from scam victims nationwide.

One of Sisodia’s mobile phones contained chat details discussing his commission share for providing the bank accounts, police said. He was found carrying two new bank account kits and two phones at the time of arrest.

Syndicate linked to online gaming, job scams & ‘digital arrest’ frauds

During interrogation, Sisodia allegedly confessed to supplying accounts to cybercrime networks involved in online gaming scams, fake job scams, and the increasingly common digital arrest frauds, a senior officer said.

Police added that mule account providers form only one layer of a multi-tiered cybercrime ecosystem.

“The mule accounts transfer money to the next layer, which converts stolen funds into cryptocurrency. Crypto firms often do not reveal transaction details, making custodial wallet information difficult to obtain,” the officer said.

Mule accounts a widespread concern

The case underscores the alarming scale of mule account misuse in India. In June, the Central Bureau of Investigation (CBI) revealed that more than 8.5 lakh mule bank accounts had been opened across over 700 bank branches nationally, often without proper KYC checks or risk assessment.

Probe widens

Police are now investigating Sisodia’s associates, the total number of accounts he helped open, and the amount he earned in commissions. He has been booked under relevant sections of the Information Technology Act and Section 318 (cheating) of the Bharatiya Nyaya Sanhit