Surat City Police have arrested 77 people across several states and registered 58 cyber fraud cases after a three-day crackdown on mule account networks used to launder proceeds from online scams, uncovering fraudulent transactions worth ₹23.85 crore and freezing over ₹1.04 crore linked to the accounts under investigation. The drive, codenamed ‘Operation Mule Hunt 2.0’, was carried out from 31 May to 2 June under the direct supervision of Police Commissioner Anupam Singh Gehlot.

How the mule account racket worked

According to police, cybercriminals routinely move defrauded funds through layers of bank accounts in quick succession before withdrawing cash from ATMs — a tactic that makes recovery extremely difficult. Investigators said mule accounts are typically sourced from economically weaker individuals in exchange for rent or commission, with the criminals retaining ATM cards, cheque books, SIM cards, and UPI credentials while the original account holder is paid a small fixed sum.

Fraud groups also allegedly collect Aadhaar, PAN, photographs, and other KYC documents to open fresh accounts in unsuspecting names, masking the identity of the true operators.

A month of groundwork

Surat police spent nearly a month preparing for the operation. Specialised teams analysed complaints filed on the National Cyber Crime Reporting Portal (NCCRP) and mapped suspicious accounts across jurisdictions. Coordination meetings were held on 15 May with senior banking officials, fintech companies, telecom operators, and the Department of Telecommunications to tighten information-sharing.

On 16 May, over 500 police personnel received specialised training from cyber experts and chartered accountants on identifying mule accounts and unravelling complex financial crime networks.

Pan-India sweep

Fifty teams from the Cyber Crime Cell and city police stations were deployed nationwide. Using central and state platforms — NCCRP, SAMANVAYA, and SAHYOG — investigators tracked suspects to multiple districts of Gujarat, as well as Delhi, Madhya Pradesh, Maharashtra, and other states. The accounts identified during the operation were linked to 339 complaints registered across the country.

The Cyber Crime Police Station recorded the highest tally, with 18 FIRs, 22 arrests, and uncovered fraud of ₹23.24 crore. Jahangirpura police detected fraud worth over ₹30.10 lakh with three arrests, while Pandesara registered two cases and arrested four.

The frauds behind the accounts

Police said the accused were allegedly involved in a wide spectrum of scams — hotel booking fraud, fake insurance and investment schemes, social media shopping ad scams, work visa fraud, diamond training fraud, driving licence facilitation, APK-based mobile hacking, loan fraud, parcel delivery scams, and job fraud. Once victims transferred money, the funds were rapidly layered through mule accounts to conceal the trail.

Repeat offenders among the accused

Several arrestees have prior records. Keval Tejani, picked up by Ashwinikumar police, was previously booked under Section 318(4) of the Bharatiya Nyaya Sanhita and Section 66(D) of the IT Act. Faizal Sheikh, held by Adajan police, faced an earlier 2025 case under the same provisions. Rahul Chavda, Shiva Makwana, Rajesh Gadhia, and Akshitkumar Katariya were also found to have prior cases ranging from cheating to serious offences under the IPC and the POCSO Act.

Police said analysis of mule account data is continuing, and further offences may be registered as more individuals in the network are identified.