Rajasthan police bust interstate cyber syndicate defrauding welfare schemes

Rajasthan Police has dismantled a major interstate cyber syndicate involved in systematic fraud against Central and State government welfare schemes with the arrest of 30 persons. The operation targeted 30 locations across 700 km, stretching from Dausa and Bandikui to adjoining areas in Madhya Pradesh.

The police action, launched as part of ‘Operation Shutter Down’, was the first of its kind in the country, revealing large-scale misuse of public funds meant for farmers, the poor, and vulnerable communities. Properties worth ₹3 crore, including ₹52.69 lakh in cash, 14 luxury vehicles, and electronic equipment, were seized.

Jhalawar Superintendent of Police Amit Kumar said on Thursday that a confidential investigation was launched after receiving a complaint about a man from Kamkheda region allegedly committing fraud in government schemes. There were suspicious transactions and repeated deposits of government funds into multiple bank accounts within short durations.

“Fraud was detected in major welfare schemes such as the Prime Minister’s Kisan Samman Nidhi, social security pensions and compensation schemes. Funds were fraudulently withdrawn from Jodhpur, Kota, Bundi, and Dausa using identities sourced from Jhalawar,” Mr. Kumar said.

Multiple bank accounts were linked to a single mobile number and large withdrawals were made immediately after deposits, he added. During confidential field verification in remote areas, the probe revealed that certain individuals were purchasing bank accounts and identity documents from ineligible persons, and these documents were used to fraudulently claim government benefits.

The official portals were manipulated to show ineligible persons as approved beneficiaries, and the funds transferred from the government treasury were siphoned off in large quantities. The SP said the syndicate charged 50% to 75% commission, thereby misappropriating crores of rupees in public funds.

As many as 70 police teams worked non-stop for 70 hours to bust the network, arresting the accused across multiple States in a synchronised operation. A special investigation team was formed, and a dedicated cyber control room was established at the district headquarters for real-time monitoring and coordination.

Mr. Kumar said the State Bank of India formed a four-member expert team to assist in analysing bank accounts and tracing the money trail in view of the vast amount of financial data recovered. The seizures included cash, cars, tractors, laptops, printers, a currency counting machine, mobile phones, SIM cards, ATM cards, finger scanners, QR scanners, and pen drives.

“Operation Shutter Down marks a historic milestone in the fight against cyber financial crime. It has exposed how organised criminals were attempting to exploit the country’s welfare infrastructure,” Mr. Kumar said. He added that the operation had safeguarded government funds and reaffirmed the Rajasthan Police’s commitment to transparent and accountable governance.