In a major breakthrough, Lucknow Police have arrested one of the prime accused in the ₹120-crore cyber fraud case linked to Dr. A.P.J. Abdul Kalam Technical University (AKTU), exposing a sophisticated network of financial crime spanning multiple states. The accused, identified as Vijay Dwarkadas Patel, 44, a resident of Chandlodia, Ahmedabad, was apprehended for allegedly playing a central role in laundering the embezzled funds through a chain of fake accounts and hawala transactions, according to an official statement issued on Friday.

The arrest marks a significant step forward in an ongoing investigation that has gripped financial and academic circles alike. Patel, who reportedly operated an RTGS and hawala business, is accused of having impersonated a private bank official to open a fraudulent bank account, into which the defrauded university funds were siphoned. Police officials said he facilitated the diversion of a substantial portion of the ₹120 crore into multiple accounts across India, disguising the paper trail to make tracing difficult.

The operation to nab Patel was conducted under the close supervision of top officials, including the Lucknow Police Commissioner, Joint Commissioner (Crime & Headquarters), Deputy Commissioner of Police (Crime), and Additional Deputy Commissioner (Cyber Crime). The arrest was executed by a special team led by Inspector Brijesh Kumar Yadav, in charge of the Cyber Crime Police Station, Lucknow. The department emphasized that Patel’s capture was the result of a long and complex probe involving digital forensics, bank surveillance, and interstate coordination.

How the ₹120-Crore Fraud Unfolded

The origins of the case trace back to June 12, 2024, when Anuj Kumar Saxena, branch manager of Union Bank in Lucknow, lodged a complaint that cyber criminals had duped the bank by posing as AKTU officials. The fraudsters, armed with convincing fake documents and email communications, approached the bank with a proposal to create a fixed deposit (FD) of over ₹100 crore in the university’s name. Believing the documents to be genuine, bank officials processed the transaction, resulting in the transfer of ₹120 crore from AKTU’s official account into a fraudulent one.

The deception was meticulously planned. Investigators later found that the accused used forged documents, counterfeit KYC papers, and fabricated authorization letters, presenting themselves as representatives of both AKTU and Union Bank. They also operated through spoofed email IDs—including addresses resembling a private bank’s official domain and [email protected]—to communicate with the bank’s staff. The cybercriminals set up a forged FD account at a private bank’s Vidhan Sabha Marg (Hazratganj) branch, under the false pretense of it belonging to the university.

Once the money was transferred, the gang quickly moved the funds out of the fake account through RTGS (Real-Time Gross Settlement) transactions, scattering it across multiple accounts in different states to evade detection. Of the ₹120 crore, officials said ₹100 crore was routed to other accounts, while the remainder was withdrawn or redirected through hawala operators.

Patel’s Role in the Scam

During interrogation, Vijay Dwarkadas Patel reportedly confessed to his involvement in the fraudulent operation and named his associates — Hitendra Shah and Sunil Trivedi of Ahmedabad and Kapil Vasoya of Surat — as collaborators. Patel admitted that he had managed several of the bank transfers and handled hawala conversions for the group.

According to the police statement, Patel disclosed that he had transferred ₹96 lakh into an SBI account registered under the name “MI Traders.” Of this amount, he withdrew ₹61 lakh in cash, sending ₹60 lakh to Lucknow and ₹30 lakh to Surat through hawala channels, keeping a small portion for himself as commission. These findings have further confirmed that the embezzled money did not remain confined to digital transfers but was also circulated through traditional money laundering networks, complicating recovery efforts.

Expanding Investigation and Multiple Arrests

Police have so far arrested 10 members of the gang, each allegedly responsible for different layers of the operation — from document forgery and impersonation to account creation and hawala distribution. Authorities are now working to identify additional conspirators who may have facilitated the transfers or provided fake credentials.

A mobile phone recovered from Patel is believed to hold critical evidence, including communication records, contact lists, and transaction details that may lead investigators to other suspects. Cyber forensic experts are analyzing the device for clues about offshore connections or cryptocurrency involvement, as such large-scale frauds often integrate digital assets to obscure money trails.

Officials from the Uttar Pradesh Police Cyber Crime Unit confirmed that the case represents one of the largest financial cyber frauds ever linked to a government-funded educational institution. “The accused created an intricate web of deception, using real-time digital banking channels and fake documentation to mislead both the university and the bank. The arrest of Vijay Patel is a crucial step, but we are aware that several more individuals played roles in the background,” said a senior investigator familiar with the case.

Background and Institutional Fallout

The fraud’s discovery in mid-2024 had sent shockwaves through AKTU, one of India’s largest technical universities with over 750 affiliated colleges. The diversion of ₹120 crore—intended for institutional development, research, and infrastructure—sparked questions about cybersecurity gaps and verification protocols in government-linked financial systems. Following the exposure, both AKTU and Union Bank of India initiated internal audits to examine procedural lapses that enabled the fraud.

Sources said the bank has since overhauled its transaction verification mechanisms and strengthened authentication requirements for large transfers. AKTU, meanwhile, has tightened its internal controls and implemented additional layers of digital oversight to prevent impersonation attempts. Officials have also introduced staff training modules on cyber fraud awareness and document validation.

Broader Implications

The case underscores how cyber-enabled financial crimes in India are evolving in sophistication, often blending digital forgery with traditional money laundering practices like hawala. It also highlights the increasing vulnerability of government and educational institutions, which manage vast funds and rely heavily on digital transactions.

Law enforcement agencies, particularly cybercrime units, have repeatedly warned about the surge in high-value digital frauds where fake domain names, cloned websites, and deepfake communications are used to manipulate officials. Experts believe the AKTU case will likely serve as a precedent for reinforcing multi-level authentication across public sector banks and universities.

What Lies Ahead

As the investigation continues, authorities are focusing on tracing the remaining funds and apprehending the masterminds believed to be operating from Gujarat and possibly abroad. Police sources indicated that money trail mapping and coordination with the Enforcement Directorate (ED) are underway to investigate potential violations under the Prevention of Money Laundering Act (PMLA).

Officials are also exploring whether similar fraudulent operations have targeted other government institutions. With multiple jurisdictions involved, police have sought cooperation from state cyber units in Gujarat, Maharashtra, and Delhi, as well as from national banking authorities.

While Patel’s arrest brings a significant breakthrough, investigators admit that recovering the full ₹120 crore may take time due to the complex layering of transactions and the use of underground hawala channels. However, law enforcement officials maintain that the case will set a benchmark for cyber-financial investigations in India, reinforcing accountability and preventive vigilance within digital banking ecosystems.