Mumbai News: Special CBI Court Denies Bail To 23-Year-Old Nagpur Student In ₹3.81 Crore Cyber Fraud Case

Mumbai: The special CBI court has refused to grant bail to Shaurya Singh, a 23-year-old student from Nagpur, booked in connection with mule account holders, which were allegedly used by cyberfraudsters. Singh was arrested on July 13 from Nagpur. The CBI had claimed that he had assisted other accused in cyber frauds, who are still absconding.

Involvement in Mule Accounts

One of the accounts, opened in the name of SP Cargo and Courier Services Pvt Ltd at IndusInd Bank, Virar (East), was operated by Sudhir Palande. Investigators said Palande was part of a cyber fraud conspiracy, in which victims were coerced into transferring a total of Rs 3.81 crore into the account through 12 transactions on July 2. Palande received lakhs in commission.

Cyber Fraud Via Telegram Links

The prosecution claimed that Singh was assisting other accused involved in the cyber fraud. It is alleged that he directly connected with unknown companies, big agents through Telegram channels for defrauding common persons and diverting funds of cyber crime through various mule accounts spreading pan-India. It is claimed that on July 1, before Palande's account was used, Singh was the person who had collected the kit issued for Palande.

CBI Alleges Crypto Transactions

Besides, the CBI claimed that Singh had made payments to various persons working to keep watch on Palande on July 1 and July 2, including payments towards their hotel stay and food.

Investigation has further revealed that Singh has crypto wallets with COINDCX, BINANCE, and KUCOIN Exchanges. He allegedly received crime proceeds of 10,680 USDT (Tether cryptocurrency – approximately Rs 10 lakh) from an unknown account of a cyber fraudster in his Binance wallet on July 2. Singh had transferred 5,338 USDT to Palande’s friend’s wallet, 2,270 USDT were sent to an unknown agent and 2,269 USDT were transferred to his KUCOIN wallet.

Singh’s lawyer, however, denied the allegations and said that Singh is currently pursuing his studies in the first year of a Bachelor of Computer Application degree in a college in Nagpur.

It is further contended that the allegations of the prosecution are completely false and baseless, and Singh is innocent. He has not committed any wrong for which any penal liability would attract. So also, he has not played any role as well as is not connected with the crime in question, Singh's lawyer had contended.

Mule Accounts Case: CBI Finds Banks Ignored Address Verification, Breached KYC Norms

Court Cites Serious Nature of Offence

The court, however, while rejecting the bail plea of Singh observed, “It is clear that the investigation is at an initial stage. The offence involves the fraud transaction of a huge amount of money through electronic devices and digital means. Further, it is seen that the offence has been committed through electronic devices and it is covered under cyber fraud. Further cyber frauds are directly hampering the finances of the country. Yet the prima accused who is the brain behind the offense has not been traced out."