Bengaluru police have apprehended four suspects, including an Axis Bank manager, for allegedly siphoning off more than Rs 12 crore from Dreamplug Paytech Solutions, the parent company of fintech unicorn CRED. The high-profile case has revealed startling details of a sophisticated financial scam.
How the Fraud Unfolded
The scam came to light on November 12, when executives at Dreamplug noticed irregular transactions in their accounts. A staggering Rs 12.2 crore had vanished from two Axis Bank accounts—a current account and a nodal account opened in 2021.
Over 14 days, between October 29 and November 11, the fraudsters executed 37 transactions, transferring funds to various accounts across the country. The sheer scale and speed of the operation have left investigators combing through a web of financial trails.
The primary accused include Vaibhav Pithadiya, an Axis Bank relationship manager from Rajkot; Parmar Neha Ben Vipulbhai, a banking agent from Surat; Shailesh, an insurance agent based in Rajkot; and Shubham, a commission agent from Rajkot.
The Complaint That Sparked the Investigation
The case was initiated following a formal complaint lodged by Narasimha Vasanth Sastry, a senior executive at CRED. The fintech platform, founded by Kunal Shah, allows users to make diverse payments, including credit card bills and UPI-based peer-to-peer transfers. Its popularity and growing user base make it a lucrative target for financial fraud.
Police sources have confirmed that the suspects exploited their professional access to orchestrate the crime. The involvement of a bank employee with insider knowledge has intensified scrutiny on financial institutions’ internal controls.
The Bigger Picture: Fintech’s Growing Challenges
This incident highlights the vulnerabilities of fintech companies, even as the sector continues to expand. CRED, headquartered in Bengaluru, reported a 66% increase in revenue year-over-year, reaching Rs 2,473 crore. The firm, backed by $1 billion in funding across nine investment rounds, has become a major player in India’s fintech landscape.
Yet, this case underscores the need for heightened vigilance. As platforms grow, they must contend with increasingly sophisticated threats. The incident also raises questions about regulatory safeguards in India’s burgeoning digital payments ecosystem.
Key Details from the Case
To summarize the major aspects of the investigation:
- Fraud Detection Date: November 12
- Number of Transactions: 37 over 14 days
- Accounts Affected: Axis Bank current and nodal accounts
- Suspects: Four individuals, including one Axis Bank relationship manager
What Happens Next?
Authorities are now tracing the money trail and probing whether additional individuals or entities were involved. Both CRED and Axis Bank have been approached for comments, though official statements are pending.
This case is a stark reminder of the risks inherent in the digital financial space, especially as India’s fintech sector continues its meteoric rise.
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