Following a detailed preliminary inquiry, the central investigation agency has registered an FIR against a branch head of Punjab & Sind Bank and 18 other individuals for their alleged role in routing illicit funds exceeding ₹1,000 crore through mule accounts, officials said on Friday.
The probe revealed that 13 mule accounts were opened at the bank’s Government Girls Senior Secondary School Branch in Sriganganagar, Rajasthan. These accounts were created in the names of non-existent firms using forged and fabricated documents. Vikas Wadhwa was the branch head at the time, the agency said.
Investigators found that several individuals arranged fake Know Your Customer documents, false rent agreements, and other fabricated records to facilitate the opening of these accounts. According to the FIR, the accounts were allegedly opened “with the connivance and criminal conspiracy of unknown bank officials, violating KYC norms, due diligence requirements and standard operating procedures.”
A mule account, typically opened using falsified identification details, is used to move or launder illegal money, sometimes without the knowledge of the individuals whose identities are misused.
The FIR further stated that “Fake site visit reports and business verification were created by the bank officials to facilitate opening of these current accounts in the names of fictitious firms.” All 13 firms linked to the accounts were found to be non-existent and created solely to operate these mule accounts using forged documents.
The agency alleged that large transactions worth thousands of crores of rupees were routed through these mule accounts using multiple banking channels and digital platforms. “These accounts were subsequently used to route, layer and transfer proceeds of cyber-crime and other illicit activities. The transaction amount involved…is about ₹1,084 crore,” the FIR said.
The central probe agency added that the accused, including Wadhwa, made unlawful gains for themselves and caused “wrongful reputational loss” to Punjab & Sind Bank. It warned that if money laundering charges are established, the actions of the accused could also expose the bank to regulatory penalties, placing it at risk of financial loss.
The investigation is continuing.
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