New Delhi: The Delhi Police has dismantled a sophisticated cyber-fraud syndicate operating through a network of shell companies and mule bank accounts, arresting two key accused involved in siphoning off nearly ₹180 crore from victims across India, officials said on Friday.

The investigation, conducted under operation “Cy-Hawk,” a special drive targeting organised cybercrime, revealed that the syndicate had floated at least 20 shell companies to receive and launder money obtained through various online frauds.

“The case came to light after multiple cybercrime hotspots were identified in the New Delhi district during a review of complaints filed on the National Cyber Crime Reporting Portal. Investigators found that a private bank account was repeatedly receiving funds linked to fraud,” a senior police officer said.

The account was registered under the name of Rajesh Khanna, who was listed as a director of a private limited company located on Barakhamba Road, Connaught Place. A preliminary inquiry revealed that the account was being used as a mule account to receive and transfer defrauded money.

Following a complaint, an FIR was lodged on November 19 last year, and police initiated an investigation to trace the accused. During the probe, Khanna disclosed that he had opened the company and its bank account on instructions from his associates Sushil Chawla and Rajesh Kumar Sharma, who controlled the fund transfers. Khanna also revealed that the duo had facilitated the creation of 20 additional shell companies to siphon cyber-fraud proceeds.

Police scrutiny of these firms and their accounts uncovered a complex layering system designed to move cheated money across multiple channels. “A total of 176 cyber-fraud complaints, involving transactions totaling approximately ₹180 crore, were linked to accounts operated by these shell companies. The victims were spread across several states, indicating the nationwide scale of the syndicate,” the officer added.

During the investigation, police learned that Khanna had died at a hotel in Noida. Chawla and Sharma initially cooperated but later evaded questions and withheld information about the syndicate’s operations. Suspicious chats recovered from their mobile devices indicated their active control over the shell company accounts.

Digital evidence and financial trails confirmed that Khanna had been used as a front, while the main operations were directed by Chawla and Sharma. Preliminary questioning revealed that the duo worked under a man named Pawan Ruia, previously linked to similar cyber-fraud cases in West Bengal.

Sushil Chawla, a resident of Greater Noida, and Rajesh Kumar Sharma, from Gurugram, have been arrested. Police seized two mobile phones and a laptop from their possession. The accused are in police custody as the investigation continues, with authorities working to map the full extent of the syndicate and recover defrauded funds.

The operation highlights the growing sophistication of cyber-fraud networks in India and the increasing reliance on shell companies and complex financial structures to launder stolen funds. Authorities have urged citizens to exercise caution while conducting online transactions and report any suspicious activity to the cybercrime helpline.