Nainital
The Nainital Police have busted an alleged international cybercrime racket operating from the Mukhani area and arrested six people, including the alleged kingpin, while two juveniles in conflict with law were taken into protective custody.
The breakthrough came during a joint operation by the Mukhani police, SOG and Cyber Cell under ‘Operation Hotspot-2026’, a statewide drive against cybercriminals, mule bank accounts, suspicious mobile numbers and illegal cash withdrawals.
Acting on specific intelligence, a joint police team raided a house in Laxman Vihar Colony under Mukhani police station during the intervening night of September 5 and 6. The operation was conducted under the supervision of senior police officials and on the directions of Nainital SSP Dr Manjunath TC.
Police identified Rahul Yadav, 30, a resident of Indore, Madhya Pradesh, as the alleged kingpin of the network. Five other accused — Harshit Kumar, Kamal Goswami, Sahil Kumar, Mohammad Ayan and Mohammad Shubhan — were also arrested.
According to police, the syndicate allegedly used mule bank accounts, ATM/debit cards, SIM cards and an unauthorised application to facilitate and layer illicit financial transactions. Investigators suspect that the racket was involved in cyber fraud involving more than ₹5 crore over a period of four months.
Crypto transactions and mule accounts
Police said Rahul Yadav allegedly used the Binance app to purchase USDT cryptocurrency after collecting cash. The cryptocurrency was then allegedly sold through an unauthorised application called UMASTER, which investigators said was obtained through Telegram and operated without valid documentation, KYC or source verification.
According to police, USDT worth around ₹4-5 lakh was allegedly transacted daily, with participants being lured by an additional three per cent profit and bonus.
The gang allegedly recruited local youths by offering them commissions and obtained bank accounts, ATM/debit cards, cheque books and passbooks from account holders. These accounts were allegedly used as mule accounts to layer and route illegally obtained funds.
Police further alleged that gang members withdrew cash from the mule accounts through ATMs. When the cash involved was substantial, the money was allegedly deposited or transferred into other bank accounts through Cash Deposit Machines (CDMs).
The gang allegedly retained the SIM cards linked to the bank accounts, allowing its members to control the accounts and restricting account holders from independently accessing or monitoring transactions.
24 ATM cards, 11 smartphones seized
During the raid, police recovered ₹1,18,800 in cash, a Dell laptop, an Apple iPad and 11 smartphones, including iPhone 17 Pro, iPhone 14 Pro, Samsung Galaxy S24 and Samsung Galaxy S22 Ultra models.
The police also seized 24 active ATM/debit cards belonging to different banks, 12 active SIM cards, six cheque books, four passbooks and 16 bank deposit/CDM slips.
Police said efforts were underway to arrest two other wanted suspects allegedly linked to the network.
The two juveniles taken into protective custody were produced before the competent authorities for further legal proceedings under the Juvenile Justice framework.
A case has been registered at Mukhani Police Station under FIR No. 141/2026 under Sections 66(C) and 66(D) of the Information Technology Act and Sections 3(5) and 318(4) of the Bharatiya Nyaya Sanhita (BNS).
SSP Nainital announced a cash reward of ₹2,500 for the police team involved in the operation.
Police appeal
Nainital Police have appealed to the public not to hand over their bank accounts, ATM/debit cards, passbooks or cheque books to anyone in exchange for commissions or financial incentives.
Police warned that account holders may also face legal action if their accounts are found to have been used for cybercrime.
The public has been advised to report suspicious financial activity immediately to the nearest police station or through the National Cyber Crime Helpline at 1930.
