The racket, tied to a ₹90-crore scam, involved at least 20 “mule accounts” used to siphon and convert funds into cryptocurrency via China and Dubai.
BY PC Bureau
November 27, 2025: Puducherry’s Cyber Crime Police have busted a sprawling cyber-fraud network allegedly run from inside an engineering college — a hub investigators now describe as a “hotspot for cyber crime.” The racket, linked to a ₹90-crore scam, involved students selling bank accounts of friends and classmates to cyber-criminals, who laundered money through India before converting it into cryptocurrency via networks in Dubai and China.
The investigation began when two engineering students, Dinesh and Jayapratap, approached police after their bank accounts were abruptly frozen. They had handed their account details to a friend, Harish — now an accused — who had allegedly collected more than 20 bank accounts from students and local residents. These were used as “mule accounts” to stash scam proceeds. At least ₹7 crore was withdrawn through these accounts, police said.
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Seven people — including four engineering graduates — have been arrested so far: Thomas alias Hayagriva, Harish, Ganesan, Govindaraj, Yashwin, Rahul and Ayyappan. Officers seized ₹5 lakh in cash, 171 cheque books, 75 ATM cards, 20 mobile phones, laptops, computers, several passbooks, credit cards and a Hyundai Verna car.
A key player, Ganesan, allegedly acted as a link to cyber-criminals in China, helping convert withdrawn funds into cryptocurrency and transferring them through Telegram in exchange for commissions.
Puducherry Senior Superintendent of Police (Cyber Crime) Nithya Radhakrishnan, IPS, told media persons the arrests represent a crucial breakthrough against the ecosystem supporting cyber-fraud. “We have been able to apprehend those laundering money for cyber-criminals, not just the account holders. This shows how organised and international these networks have become,” she said.
She cautioned that sharing bank credentials — even with trusted friends — can lead to severe legal and financial consequences.
The Puducherry Police have once again urged the public not to share bank account details, ATM cards or online banking credentials with anyone, and never allow others to operate their accounts.
