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Earlier this week, the West Bengal cybercrime wing claimed to have uncovered a large organised cybercrime network that had allegedly swindled its victims of over Rs 317 crore. The bust, which came on the back of an April 2024 complaint, has allegedly led the police to 148 shell companies, with investigators alleging that the money trail leads back to Indian industrialist Pawan Kumar Ruia, among other people.
On November 6 and November 12, investigators conducted search operations at several key locations in Kolkata, including the residence of industrialist Pawan Ruia, and premises linked to Ruia Centre and Dunlop Industrial Products Pvt Ltd.
Attempts to reach Ruia were unsuccessful.
According to the police, probe began on the back of a complaint by a 65-year-old retired State Bank of India (SBI) employee.
The criminal network allegedly targeted victims through two major cyber fraud types: fraudulent investment schemes and “digital arrest” scams through platforms such as WhatsApp and Telegram. Funds were first deposited into accounts — often in nationalised banks — and eventually transferred to current accounts of a sophisticated web of shell companies.
A significant portion — Rs 170 crore — of the crime proceeds was converted into cryptocurrency to “obscure the money trail further”, police officers said.
According to investigators, the National Cyber Crime Reporting Portal (NCCRP) has recorded 1,379 fraud-related complaints.
So far, investigators have allegedly uncovered that a total of 148 shell companies were linked to the scam, of which 73 share the same registered address — at 9, Ezra Street. According to the police, investigation showed there were no offices at this registered address.
The probe also allegedly found that 11 of the 16 linked companies have common directors who collectively hold directorships in 186 companies across India – apparently indicating the scale of the “scam”.
Initial police findings showed that one of the companies, Hughli Machineries Pvt Ltd, had 11 current bank accounts. Of the complaints with NCCRP, 544 are directly linked to this company, and the money involved stands at over Rs 97 crore.
According to investigators, many of these companies are either directly or indirectly linked to industrialist Pawan Kumar Ruia.
Those named in the FIR in the case include Ruia, his family members Raghav Ruia, Pallabi Ruia, Soma Ruia, and Sukhil Ruia, and his close associate Rahul Verma. The Ruia family members are suspected to have received money from at least 23 complainants.
Rahul Verma, arrested on November 1, is described as a close associate who allegedly laundered funds through mule accounts and crypto wallets.
Pawan Kumar Ruia is the chairman and MD of the Ruia Group. Born in 1957, he has degrees in Law (LL.B.), chartered accountancy, cost accountancy, and company secretaryship from the University of Calcutta.
This is not Ruia’s first run-in with the law. He was arrested in 2016 in a Rs 50 crore forgery and theft case involving the Indian Railways.
According to officials, investigators are probing whether Ruia had simply “allowed” the shell companies to be used to siphon money or if he was directly involved in the scam.
