Massive ₹317-Crore Online Fraud Exposed by West Bengal Police During Major Cyber Crime Investigation

West Bengal Police's Cyber Crime Wing uncovered a ₹317 crore online fraud involving 148 fake shell companies. The authorities raided the home and businesses of businessman Pawan Ruia after discovering his alleged involvement in the fraud.

According to officials, the issue was brought to light after several people from various parts of India, including West Bengal, reported being scammed in online transactions. Over 1,379 people were apparently victimized by the cyber racket.

Police investigations discovered that the illegal funds were transferred through hundreds of bank accounts belonging to 148 shell companies. A shell company is a business that simply exists on paper, with a name, registration, and possibly a bank account, but no physical office, staff, or business activity. Shell businesses are sometimes used in online fraud or money laundering cases to make illegal money appear to have come from a legitimate source.

Interestingly, many of these businesses were registered at the same address, raising suspicions. The funds were subsequently transferred to mule accounts, which were set up to conceal illegal money trails, and ultimately transformed into other assets to avoid detection. According to a senior police source, the investigation revealed that approximately ₹170 crore was converted into cryptocurrency. This was most likely done to make it difficult for law enforcement to track or freeze the funds.

On November 5, 2025, the police filed a suo motu FIR (a case launched on their own) at the Barrackpore Cyber Crime Police Station. The FIR identifies Ruia, his family members, and other close business associates. It also reveals that 11 directors connected to Ruia-controlled companies serve on the boards of 186 other corporations across India, indicating an extensive and sophisticated network of linked enterprises. Following the filing of the case, the police raided many places, including Ruia Centre on Syed Amir Ali Avenue, Dunlop Industrial Products Pvt. Ltd. at Park Street, Berger House within the Park Street police station area, and Ruia's residence in Ballygunge.

Officials said the inquiry is still underway, and more names may emerge as digital evidence is evaluated. Police are also investigating cryptocurrency transactions and other financial documents to see how the funds were transferred and laundered. The West Bengal Police Cyber Crime Wing's significant crackdown illustrates growing concerns about online financial fraud in India, as well as the expanding use of cryptocurrency in cybercrime cases. The case serves as a powerful reminder of the need of public awareness and digital alertness in preventing such large-scale cyber frauds.

Information referenced in this article is from The Hindu