Patna/Muzaffarpur: The Enforcement Directorate (ED) has launched a money laundering investigation into the Punjab National Bank (PNB) fraud case, with simultaneous raids conducted at four locations in Muzaffarpur by the Patna zonal team. During the searches, the agency seized key documents and digital evidence linked to the alleged scam.
According to the ED, criminals siphoned off Rs 1.29 crore from customers’ bank accounts by manipulating online banking systems through SIM card swapping. So far, Rs 83 lakh linked to the accused has been frozen during the investigation. Senior police officials believe that as the probe expands, the total scam amount could go up to Rs 1,000 crore.
The fraud first came to light when Jayant Kant, currently the in-charge DIG of the Tirhut range, was serving as the Senior Superintendent of Police (SSP) in Muzaffarpur. As the investigation progressed, similar cases were detected not only in Muzaffarpur but also in several other districts. The ED has currently initiated its probe focusing on cases registered in Muzaffarpur.
Probe Based on Two FIRs
The ED action is based on two FIRs registered in Muzaffarpur. On the basis of these cases, a money laundering investigation was initiated. The agency said its probe has revealed a well-planned and complex banking fraud and money laundering network.
As per the findings, large sums were fraudulently withdrawn from the savings accounts of two victims at the PNB Jawaharlal Road branch in Muzaffarpur. Around Rs 1.07 crore was siphoned off from one account, while Rs 22.40 lakh was withdrawn from another, taking the total fraud amount to Rs 1.29 crore.
How the Scam Was Exposed
The case came to light about five years ago when Ramdev Ram, a retired BSNL employee, approached the public grievance hearing of the then SSP Jayant Kant, alleging that Rs 22.40 lakh had vanished from his bank account. Following his complaint, an investigation was initiated with the involvement of the then DSP.
Subsequent inquiries revealed similar fraudulent withdrawals from several other accounts, including that of a retired woman professor. At the time, the then SSP had also reported a possible technical flaw in PNB’s software to the government. The matter eventually reached the High Court and the Supreme Court, as similar frauds were reported from multiple locations.
SIM Swapping Used to Execute Fraud
Investigators found that the fraud was carried out using SIM card swapping. The accused managed to transfer the mobile numbers registered by customers for SMS alerts and online banking into their own names, enabling them to gain unauthorised access to bank accounts.
Documents and Digital Evidence Seized
During the raids, the ED recovered several suspicious documents, digital evidence and other incriminating materials. Bank accounts linked to the accused containing approximately Rs 83 lakh were immediately frozen.
The ED said further investigation is underway to identify the full extent of the fraud, trace the money trail and determine the role of all those involved.
