Bengal Police bust ₹317-cr cyber fraud racket, raid businessman Pawan Ruia’s premises

The cybercrime wing of the West Bengal Police has unearthed a ₹317-crore online fraud involving 148 shell companies and carried out raids at multiple premises linked to industrialist Pawan Ruia, a Kolkata-based businessman with interests in steel, power, and other industries, for his alleged connection to the racket, officials said on Tuesday. .

According to investigators, the case came to light after the Barrackpore Cyber Crime Police Station registered a suo motu FIR on November 5, following a spate of complaints of online cheating from victims across India. The police said that 1,379 complainants from West Bengal and other states were defrauded through digital platforms.

“Funds collected from victims were channeled through numerous bank accounts belonging to shell companies, many sharing the same registered address and were eventually diverted to various mule accounts,” the police said in a statement. Preliminary findings indicate that about ₹170 crore of the diverted money was converted into cryptocurrency to obscure its trail and evade detection.

Police teams carried out coordinated searches last Thursday at several locations, including Ruia Centre on Syed Amir Ali Avenue in Park Circus, Dunlop Industrial Products Pvt Ltd on Park Street, Berger House, and Ruia’s Ballygunge residence. The FIR also names members of Ruia’s family and close associates, noting that several directors linked to his entities hold positions in over 180 other companies across India.

Investigators said the probe points to a large, organised cybercrime network that exploited corporate loopholes and financial channels to launder stolen funds. The findings highlight the growing convergence of cyber and white-collar crimes in India, where legitimate business structures are increasingly being misused for illicit gain.

Officials believe the case could lead to wider regulatory scrutiny of shell firms, closer monitoring of cryptocurrency transactions, and enhanced coordination between cybercrime units and financial regulators. The probe’s outcome may also set a precedent for prosecuting complex digital frauds under existing cyber and money-laundering laws.