Meenakshi Nakhre, a 69-year-old retired laboratory technician from the Health Department, was allegedly defrauded of Rs 1.58 crore in a digital arrest cyber fraud case in Gwalior. Police have arrested a businessman from Maharashtra, and the investigation has uncovered suspicious financial transactions and an extensive mule account network spanning multiple states.
The Gwalior Crime Branch arrested Nashik-based iron trader Vitthal Phalse from Maharashtra in connection with the Rs 1.58 crore digital arrest cyber fraud case. Investigators found that Rs 19.50 lakh allegedly obtained from the victim was transferred to the accused's ICICI Bank current account.
Police said the investigation revealed approximately Rs 1.10 crore in suspicious transactions through the same account over the past six months. Investigators suspect the accused may be linked to other cyber fraud cases and are examining all related financial transactions in detail.
According to cyber experts, the money allegedly obtained from the victim was initially transferred to four separate bank accounts in West Bengal, Kerala, Chhattisgarh and Maharashtra. On the same day, the funds were subsequently transferred to 133 bank accounts located in more than 40 cities across 11 states.
Investigating agencies said these accounts are mule accounts used by cyber criminals in exchange for commission. Police believe the network was used to rapidly move the money through multiple accounts to conceal its trail.
The investigation has indicated that the cyber fraud network extends across Maharashtra, Karnataka, West Bengal, Uttar Pradesh, Haryana, Delhi, Madhya Pradesh, Bihar, Jharkhand, Odisha, Gujarat and Rajasthan. According to police, agents in these states facilitate the transfer of allegedly defrauded funds by providing bank accounts.
Police are identifying additional suspects and bank accounts linked to the network. Further arrests are expected in the case.
Police said the accused allegedly subjected Meenakshi Nakhre to continuous phone and video calls from May 10, 2026, claiming she was under digital arrest. The callers allegedly identified themselves as officials from the Telecom Department, Delhi Police and the CBI, and accused her of money laundering.
According to police, the victim remained under psychological pressure for about 33 days and transferred a total of Rs 1.58 crore into multiple bank accounts. Police said a portion of the funds transferred to the accused's account has been frozen, and the investigation into the cyber fraud network is continuing.
