The city police have arrested the alleged kingpin of an interstate online betting and money laundering racket from Kolkata, in a major breakthrough in a case that is estimated to have facilitated illegal transactions worth over ₹400 crore in six months.

Addressing a press conference on Wednesday (May 13, 2026), Police Commissioner Shankha Brata Bagchi said the alleged kingpin, Karan Pakhrani, 27, alias Gabbar, was apprehended from a hideout in the Regent Park area of Kolkata. Six of his associates, involved in managing the technical and financial logistics of the operation, were also taken into custody.

Mule accounts

The case, registered as Crime No. 80/2025 at the Cyber Crime police station, originated from a complaint by an unemployed youth who was allegedly lured into providing bank accounts on the pretext of legal gaming. Investigation revealed that the racket allegedly used 224 “mule” bank accounts sourced from various States to layer and integrate funds generated through betting sites.

Mr. Bagchi said the accused had operated a tiered structure, using call centres in Bengaluru and other metropolitan hubs to coordinate with sub-bookies. The illegal funds were routed through UPI and bank transfers, and moved through a complex web of accounts to evade detection by financial regulators, he said.

Forensic tools used

The Commissioner said advanced digital forensic tools, KHOJ and Gandhivam, played a central role in cracking the case. The tools allowed investigators to map the digital footprints of the accused, confirm device ownership, and link specific mobile numbers and email addresses to the betting platforms.

“Our teams tracked the suspects across several States, including Karnataka, West Bengal and Chhattisgarh. By analysing the Call Detail Records (CDR) and IP logs, we were able to pinpoint the core leadership of the gang,” the Commissioner said.

During the raids, the police seized mobile phones, bank passbooks and currency counting machines.

A warning against debt traps

Mr. Bagchi cautioned that online gambling platforms were designed to push vulnerable individuals into debt traps. He said the racket had targeted youth and those in financial distress, and that this often led to financial ruin for their families.

The police have frozen several linked accounts, and are pursuing the trail of sub-bookies and “punters” spread across the country. The arrested have been brought to Visakhapatnam on transit remand and will be produced in court for judicial custody.