Indian CBI Raids 89 Locations Across 20 States Under Operation Chakra-VI

• The CBI has raided 89 locations across 20 states under Operation Chakra-VI in India.
• The Supreme Court is pushing for bank freeze procedures as authorities target mule accounts. 
• Banks must distinguish intentional mule accounts from innocent people who unknowingly receive fraud funds. 

Indian Central Bureau of Investigation (CBI) has launched a nationwide crackdown under Operation Chakra-VI. The operation is focused on transnational cybercrime networks involved in “digital arrest” scams that have defrauded victims by an estimated ₹42.36 crore in three major cases. The Supreme Court, on the other hand, is pushing for a standardised bank freeze mechanism. 

CBI Raids 89 Sites Under Operation Chakra-VI

On September 4, 2026, CBI launched coordinated searches in 89 locations across 20 states under Operation Chakra-VI, its nationwide crackdown against organised cybercrime networks involved in digital arrest scams. The action focused on three major cases that the agency had taken over from state police, in which victims were allegedly kept under prolonged “digital arrest” by fraudsters impersonating police and other officials and coerced into transferring funds.

The three cases together involved alleged losses of ₹42.36 crore. In the first case, linked to BITS Pilani, the victim was held under digital arrest for three months and defrauded of ₹7.67 crore. In the second, a Gujarat victim was similarly detained for three months and lost ₹19.24 crore. The third case, from Karnataka, involved a victim kept under digital arrest for about one month and cheated of ₹15.45 crore.

In addition, the CBI arrested three persons allegedly involved in receiving, layering and dispersing fraud proceeds. Akash from Haryana allegedly received ₹1.95 crore, Raja Karmakar from Kolkata allegedly routed ₹1.5 crore through his firm’s account, while Jyoti Rani allegedly withdrew and transferred part of the funds. 

Why Mule Accounts and Unintentional Receivers Face Scrutiny

Mule accounts are often used in digital arrest and other cyber-enabled frauds to receive proceeds before funds are moved or dispersed. Banks and investigating agencies thus temporarily debit or freeze accounts that show up in fraud transaction trails. This means that intentional mules, and people who unknowingly receive money, can initially face scrutiny before investigations determine knowledge, intent and involvement.

The Supreme Court is pushing stronger, standardised action to distinguish mule accounts from genuine customers. In August 2026, it issued instructions to the Reserve Bank of India to draft and publish a Standard Operating Procedure (SOP) for temporary debit freeze, for accounts used for mule activity and cyber-enabled fraud. Banks are also increasingly adopting transaction monitoring, AI tools like MuleHunter.ai, and shared intelligence platforms to combat suspicious activity and minimize extended freezes.

Broader Impact on India’s Banking Infrastructure and Security

The increased scrutiny of mule accounts and digital arrest networks is transforming the landscape of banking in India and the security of digital payments. On one hand, it is accelerating the adoption of advanced fraud detection tools, banking intelligence sharing, and more standardized banking procedures. On the other hand, it is causing operational, compliance, and customer service pressures for banks and sometimes disrupting legitimate account holders.

Temporary debit holds and freezes have increased as banks are quick to act when an account is identified in the cyber fraud trail to limit additional losses. This “freeze first, investigate later” strategy can safeguard the broader system and enhance restitution, but can also freeze funds of individuals who may have no knowledge of fraud.

Related: India’s NHRC Raises Alarm Over Digital Arrest Scams