Latest Investigation Crackdowns: NEET Paper Leak, Bank Frauds, ED Raids, Betting Apps & Terror-Financing Probes

Summary: The latest edition of the Darshan Mala Series provides an executive overview of major investigations being conducted by India’s key enforcement agencies, including the CBI, ED, DRI, SFIO, and NIA. It highlights significant ongoing probes such as the alleged NEET-UG 2026 paper leak, Reliance ADA/RCom bank fraud investigations, Haryana’s ₹590 crore government funds scam, GST-linked money laundering cases, online betting and gaming crackdowns, and terror-financing investigations. The report explains the roles of various agencies in tackling corruption, economic offences, smuggling, corporate fraud, cyber-enabled financial crimes, and national security threats. It also discusses increasing political scrutiny of agencies like the ED and CBI and the expanding focus on digital evidence, shell companies, hawala networks, and interstate organized crime. The document concludes that enforcement agencies in 2026 are intensifying investigations into bank frauds, money laundering, online betting, terror financing, customs fraud, and examination scams, reflecting growing emphasis on financial transparency, anti-corruption enforcement, and national security protection. The executive summaries are prepared based on information’s available in public domains.

1. Massive NEET-UG 2026 Paper Leak Investigation by CBI

• The alleged NEET-UG 2026 paper leak has escalated into one of the largest examination fraud investigations in India, with the Central Bureau of Investigation (CBI) now probing a suspected “multi-state” network involving middlemen, coaching links, “solver gangs,” and possible insider assistance.

i. What is happened in NEET-UG 2026?

 (a) The National Testing Agency (NTA) cancelled NEET-UG 2026, which had been conducted on May 3, after investigators found evidence suggesting that exam questions had circulated before the test.

 (b) The Union government then handed the case to the CBI and announced a re-examination. Around 22–23 lakh students are believed to be affected.

ii. What the CBI is investigating in NEET-UG 2026?

• • According to multiple reports, investigators are examining:

 a. Whether public servants or insiders helped access or distribute the paper.

b. A wider conspiracy operating across Rajasthan, Maharashtra, Bihar, Haryana, Uttarakhand, and other states.

c. The circulation of so-called “guess papers” that reportedly matched a large portion of the actual exam.

 d. Digital evidence including PDFs, WhatsApp groups, scanned handwritten copies, and financial transactions.

e. Payments ranging from ₹2 lakh to ₹30 lakh for access to leaked content.

iii. What are major developments till now?

 a. Several accused have been arrested or detained in Rajasthan, Maharashtra, Bihar, and Uttarakhand.

b. Investigators reportedly uncovered a network of at least 45 people.

 c. One report says a handwritten copy of the paper was scanned into PDFs and distributed before the exam.

 d. Authorities are probing allegations that leaked papers were sold as “premium guess papers.”

e. A retired professor in Latur was reportedly detained for questioning.

 iv. What is Govt. response?

• • The government has:

a. Ordered a full CBI investigation.

b. Cancelled the original examination.

 c. Announced a fresh NEET-UG exam date will be released separately.

 d. Indicated that future NEET exams may move fully online (CBT format) to reduce leak risks.

 v. What are the public reactions?

• • The controversy has triggered nationwide protests by student groups and political parties, with demonstrations outside the NTA office in Delhi and demands for accountability and examination reforms.

vi. Why this case is significant

• • This investigation is being compared to previous major exam scandals because:

 a. It affects India’s largest medical entrance examination.

 b. Millions of students’ admissions timelines are disrupted.

 c. The probe now involves interstate organized crime angles and possible institutional compromise.

2. Reliance ADA / RCom Bank Fraud Probe by CBI

• The Reliance Communications (RCom), part of the Reliance ADA Group, is under a major bank fraud investigation by India’s Central Bureau of Investigation (CBI). Key developments in the probe include:

i. The CBI has registered “multiple” FIRs against RCom and other Reliance ADA Group entities over alleged fraud involving public sector banks and financial institutions. The reported alleged exposure across cases is about INR 27,337

ii. On May 14–15, 2026, the CBI conducted fresh searches at 7 locations across Mumbai, Gurugram, and Bengaluru linked to former RCom executives, including ex-CEOs, CFOs, and directors associated with the company during 2015–2017. Investigators reportedly seized documents during the raids.

iii. Earlier in May 2026, the CBI searched 17 locations connected to other Reliance ADA Group firms including:

a. Reliance Telecom Limited (RTL)

b. Reliance Commercial Finance Limited (RCFL)

 c. Reliance Home Finance Limited (RHFL)

iv. The CBI has also arrested 2 senior RCom executives — Vishwanath and Anil Kalya — alleging they handled banking operations and fund utilisation connected to the suspected fraud.

v. The Supreme Court of India recently criticized delays in the CBI and Enforcement Directorate (ED) investigations into alleged RCom-related loan diversion and fraud cases reportedly involving more than INR 40,000 crore. The Supreme court questioned why separate bank complaints were “not” always treated as separate FIRs.

vi. The allegations broadly relate to:

a. Diversion or misuse of bank loans,

b. Alleged siphoning of funds through associated entities,

c. Possible irregularities in loan disbursal and repayment,

d. Suspected involvement of company officials and possibly bank officials.

 vii. Conclusion

 a. Investigations are ongoing

b. “No” final judicial determination of guilt has been made,

c. Accused entities and individuals retain right to defend themselves in court.

3. Punjab Minister Sanjeev Arora Arrested by ED

i. Punjab Industries Minister Sanjeev Arora was arrested by India’s ED on May 9 2026 in connection with an alleged INR 100–crore GST-linked money laundering The ED says the probe involves suspected fake GST transactions, shell companies, and financial irregularities tied to firms associated with him.

ii. According to reports, ED teams conducted raids at “multiple” locations including Arora’s official residence in Chandigarh “before” taking him into custody under the Prevention of Money Laundering Act (PMLA).

iii. A PMLA’s special court in Gurugram later granted the ED 7 days of custody for interrogation.

 iv. Arora has challenged the arrest in the Punjab and Haryana High Court, calling it “illegal and unconstitutional” and alleging violations of statutory safeguards under the PMLA 2002.

v. The ruling Aam Aadmi Party (AAP) has described the ED action as politically motivated, while the ED maintains the arrest is part of an ongoing financial crime investigation.

4. ED Arrests Senior Kolkata Police Officer

i. (a) The ED has arrested senior Kolkata Police officer Shantanu Sinha Biswas in connection with an alleged land-grabbing, extortion, and money-laundering probe linked to the so-called “Sona Pappu” network.

(b) Officials said he was taken into custody “after” more than 10 hours of questioning at the ED office in Kolkata.

ii. (a) According to reports, Biswas had allegedly skipped “multiple” ED summons earlier, and a lookout circular had also been issued against him.

 (b) Investigators are probing his alleged links to businessman Joy Kamdar and alleged financial irregularities, illegal sand mining, and extortion operations tied to fugitive criminal “Sona Pappu.”

iii. The ED reportedly claimed that Biswas was “not cooperating” and gave evasive replies during interrogation. He is expected to be produced before a PMLA’s special court in Kolkata.

5. Haryana ₹590 Crore Government Funds Scam by CBI and ED

• The INR 590-crore Haryana government funds scam is a major alleged financial fraud involving diversion of public money from government department accounts through fake banking transactions, shell companies, forged documents, and suspected collusion between bank officials, private individuals, and some government officials.

 i. What is happened?

• •  According to investigators, funds belonging to “multiple” Haryana govt. departments were allegedly siphoned out from accounts maintained at private banks including IDFC FIRST Bank and AU Small Finance Bank. The fraud surfaced in early 2026 when discrepancies were found during account reconciliation.
• The scam reportedly involved:

a. Fake or unauthorized bank accounts

b. Forged signatures of senior officials

 c. Fraudulent debit notes and cheques

 d. Transfer of money into shell companies

 e. Use of funds for gold purchases, real estate, and personal enrichment

ii. What are names of the agencies involved?

a. Central Bureau of Investigation (CBI)

 b. Enforcement Directorate (ED)

c. Conclusion

 The Haryana government transferred the case to the CBI because of the scale of the alleged fraud and suspected interstate links.

 iii. What are the key developments?

 a. More than a dozen people have been arrested, including former bank officials, government employees, businessmen, and alleged middlemen.

 b. Two IAS officers were suspended earlier in the probe.

 c. Recently, Haryana govt. reportedly allowed the CBI to question 5 IAS officers connected to departments whose funds were allegedly diverted.

 d. The ED obtained custody of former bankers accused of laundering proceeds of the scam.

 iv. What is alleged money trail?

• •  Investigators claim that:

 a. Government funds were routed into shell entities such as Swastik Desh Projects.

b. Some money was allegedly converted into gold and property purchases.

 c. Fake firms and benami transactions may have been used to conceal proceeds.

 v. Who are the important persons’ names reported in media?

 a. Former bank officials Ribhav Rishi and Abhay Kumar

 b. Builder Vikram Wadhwa

 c. Several suspended or questioned Haryana officials

 vi. What is current status?

• •  The investigation is ongoing by CBI and ED for:

 a. Tracing the flow of money

 b. Examining bank records and digital evidence

 c. Investigating possible involvement of bureaucrats and private entities

 d. Looking into potential money laundering violations under PMLA, 2002

6. SFIO Probe into IFCI-Linked Loan Irregularities

i. The reported “SFIO probe into IFCI-linked loan irregularities” refers to an investigation by India’s Serious Fraud Investigation Office into suspected financial misconduct connected to loans associated with IFCI Limited, a government-backed financial institution.

ii. The Serious Fraud Investigation Office (SFIO) functions under India’s Ministry of Corporate Affairs (MCA) and investigates complex corporate fraud and financial irregularities.

 iii. SFIO probes typically examine:

 a. Whether loans were sanctioned in violation of lending norms

 b. Possible diversion or misuse of borrowed funds

 c. Links between borrowers, intermediaries, and company officials

 d. Potential falsification of accounts or shell-company transactions

 e. Compliance failures by auditors or financial executives

iv. If the IFCI-linked matter escalates, it could involve:

a. Forensic examination of loan files and fund trails

 b. Coordination with agencies such as the ED, CBI, RBI, or SEBI

 c. Action against directors, promoters, or officials under the Companies Act and related financial laws

 v. Conclusion

 (a) At this stage, publicly available information appears limited, and “no” formal findings or charges have been confirmed in the search results I could verify.

 (b) The SFIO generally releases details only “after” investigations materially progress or prosecutions begin.

7. Big Crackdown on Online Gaming / Betting Networks by ED

• India’s Enforcement Directorate (ED) has launched a major nationwide crackdown on online gaming and betting-linked money laundering networks, with recent raids and arrests forming part of a INR 1,000 crore investigation.

 i. What are happening in the latest ED action?

 a. The ED carried out searches across “multiple” locations in Delhi-NCR, Bengaluru, and other cities in connection with suspected illegal betting operations routed through online gaming platforms

b. The probe focuses on a INR 1,000 crore money laundering network allegedly linked to real-money gaming apps and betting syndicates

 c. Authorities have reportedly seized digital records, documents, and financial data to trace fund flows

ii. What are enforcement’s actions in Games kraft case?

• • One of the biggest targets in the current crackdown is Games kraft Technologies:

 a. ED froze INR 526 crore in bank deposits and seized gold/cash “after” raids

 b. The company is accused of running real-money gaming apps allegedly used as a front for betting and money laundering activities

c. Three top executives were arrested, and the case is being investigated under the Prevention of Money Laundering Act (PMLA) 2002

iii. What are legal and court developments?

 a. The Karnataka High Court has recently sought the ED’s response to petitions challenging these arrests, keeping the case under judicial review

 b. The investigation is ongoing, with courts examining whether the ED’s actions and allegations are legally sustainable

 iv. What are ED’s allegations?

•  Across multiple cases, the ED’s core allegations are:

 a. Online gaming apps being used as a cover for illegal betting operations

 b. Use of shell companies, digital wallets, layered transactions to launder money

 c. Flow of illicit funds through FIR-linked gambling networks across states

 v. What are the key developments in the case?

•  This crackdown is part of a wider government push in India to:

 a. Separate skill-based gaming vs illegal gambling

 b. Curb unregulated real-money gaming platforms

 c. Strengthen enforcement under evolving gaming and financial crime laws

8. DRI and Anti-Smuggling Operations

•  DRI and Anti-Smuggling Operations in India mainly refer to the work of the DRI and its coordination with “other” enforcement agencies to detect, prevent, and investigate smuggling and related economic offences.

•   Core Functions of DRI •

 i. Anti-Smuggling Operations

DRI targets illegal movement of:

a. Gold, narcotics, and foreign currency

b. Luxury goods and electronics

c. Wildlife products and prohibited items

d. Fake currency and counterfeit goods

 ii. Intelligence Collection

a. Human intelligencee. informants, surveillance

b. Data analysise. trades anomalies, import/export patterns

c. Coordination with international customs agencies

 iii. Investigations

a. Identifying smuggling networks and syndicates

b. Financial trail analysise. hawala and shell companies

c. Arrests and seizure operations under Customs Act, NDPS Act and etc.

 iv. Enforcement Actions

a. Seizure of contraband goods

b. Arrest of smugglers and financiers

c. Prosecution and adjudication support

• How Anti-Smuggling Operations Work •

i. Step 1: Intelligence Input

• Information is gathered from:

a. Customs data at ports and airports

b. Informers and surveillance networks

c. International intelligence sharing

ii. Step 2: Risk Analysis

• DRI uses profiling techniques:

a. Suspicious consignments

b. High-risk routese. air cargo, coastal routes and borders

c. Repeat offenders or linked entities

 iii. Step 3: Surveillance & Interception

a. Monitoring shipments or passengers

b. Coordinated raids at airports, ports and warehouses

 iv. Step 4: Seizure & Arrest

a. Contraband is seized under customs law

b. Individuals involved are detained or arrested

 v. Step 5: Investigation & Prosecution

a. Financial links tracede. hawala and offshore accounts

b. Case filed in courts or adjudicating authorities

 vi. Legal Framework Used by DRI

a. Customs Act, 1962

b. Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985

c. Foreign Trade (Development & Regulation) Act 1992

d. Prevention of Money Laundering Act (PMLA) 2002

 vii. Coordination with Other Agencies

• • DRI often works with:

a. State police

b. Border Security Force (BSF)

c. Coast Guard

d. Enforcement Directorate (ED)

e. Foreign customs/intelligence agencies

• Why DRI is Important

a. Protects national revenue from customs evasion

b. Prevents entry of drugs and dangerous goods

c. Disrupts organized smuggling networks

d. Supports trade security and economic stability

9. Terror-Financing & Espionage Investigations by ED and NIA

• Terror-financing and espionage investigations in India are primarily handled by 2 key agencies i.e. the Enforcement Directorate (ED) and the National Investigation Agency (NIA). They operate in overlapping but distinct domains—financial crime enforcement and counter-terror/anti-national security investigations.

 i. What is role of the ED in terror-financing cases?

• • The ED focuses on financial crimes, especially those involving money laundering under the Prevention of Money Laundering Act (PMLA) 2002 . In terror-financing cases, ED typically investigates:

 a. Routing of funds to banned or extremist groups

 b. Hawala networks and cross-border transfers

 c. Use of NGOs, charities, or shell companies to disguise funding

 d. Asset attachment of individuals/entities linked to terror networks

 e. Conclusion

 A major pattern in ED investigations is tracing how funds originating abroad or through illegal channels are layered through “multiple” accounts “before” reaching operatives on the ground.

 ii. What is role of the NIA in terror-related investigations?

• • The National Investigation Agency (NIA) is India’s primary counter-terrorism law enforcement body. It investigates offences under the Unlawful Activities (Prevention) Act (UAPA) 1967, including terror financing when linked to national security threats. Key focus areas include:

 a. Terror plots and recruitment networks

 b. Radicalization modules operating domestically or online

 c. Cross-border terror links, especially involving Pakistan-based groups

 d. Espionage and sabotage cases affecting national security

 e. Conclusion

 The NIA often takes over cases from state police when they involve inter-state or international dimensions.

• • Major terror-financing investigations

 iii. What is Jammu & Kashmir terror-financing networks?

• • 1 of the most persistent areas of investigation involves funding channels supporting militant groups in Jammu & Kashmir. These cases often involve:

 a. Hawala operators

 b. Cross-border funding routes

 c. Misuse of trade and remittance channels

 d. Conclusion

 Both ED and NIA have coordinated in dismantling these networks, especially those allegedly linked to separatist groups and terror outfits.

iv. What is Popular Front of India (PFI) case?

•  The crackdown on the PFI in India was 1 of the most high-profile coordinated actions in recent years. Authorities alleged:

 a. Structured radicalization and recruitment networks

 b. Funding channels linked to overseas sources

 c. Training camps and logistical support for extremist activities

 d. Conclusion

 The NIA led the criminal investigation under UAPA 1967, while ED handled the financial trail and asset seizure operations under PMLA 2002.

 v. What are Espionage investigations?

•  Espionage cases in India often involve alleged intelligence networks linked to foreign agencies, most commonly Pakistan’s Inter-Services Intelligence (ISI), though investigations also extend to other countries depending on the case. Typical patterns include:

 a. Recruitment of informants through financial inducements

 b. Leakage of defence-related or strategic information

c. Use of digital communication channels for covert contact

 d. Infiltration of sensitive government or military-adjacent roles

 e. Conclusion

 The NIA frequently handles such cases when they involve organized national security threats, sometimes in coordination with military intelligence and state police.

vi. How the ED and NIA are coordinating?

•  Although they have separate mandates, coordination is common:

 a. NIA builds the criminal conspiracy and security angle

 b. ED traces and seizes the money flow behind it

 c. Evidence sharing is crucial in court to prove both intent and funding

 d. Conclusion

 This combined approach is especially important in modern terror ecosystems where financing and operations are deeply interconnected.

10. Increasing Political Focus on Enforcement Agencies

i. An “increasing political focus on enforcement agencies” usually refers to a pattern where governments, opposition parties, and public institutions pay greater attention to how law-enforcement and regulatory bodies operate—often with implications for accountability, autonomy, and political influence.

 ii. In practice, this focus shows up in a few recurring ways

 iii. (a) 1 major dimension is greater political scrutiny of agencies like the police, anti-corruption bodies, and financial crime regulators. In India, for example, institutions such as the ED and CBI often become central to political debate, especially when they investigate sitting politicians or high-profile economic cases.

 (b) Supporters argue this reflects stronger enforcement against corruption; critics argue it can lead to concerns about selective targeting.

 iv. (a) Another aspect is debates over institutional independence. Agencies like the Election Commission of India or state police forces are frequently discussed in terms of how insulated they are from political pressure.

 (b) When political attention increases, discussions often focus on appointment processes, transfer policies, and oversight mechanisms.

 v. Finally, this focus is tied to a broader global pattern: as states face complex threats i.e. financial crime networks, digital fraud and cross-border crime enforcement agencies naturally gain prominence. The political debate then shifts to whether stronger enforcement improves governance or risks overreach.

11. Agencies Currently Most Active in 2026

• •  What are investigating agencies main focus areas

i. Central Bureau of Investigation (CBI)

• • Investigating for leaks, bank frauds and corruption

 ii. Enforcement Directorate (ED)

• • Investigating for money laundering, FEMA, crypto and betting apps

iii. Directorate of Revenue Intelligence (DRI)

• • Investigating for Gold smuggling, narcotics and customs fraud

iv. Serious Fraud Investigation Office (SFIO)

• • Investigating for Corporate fraud and accounting irregularities

 v. National Investigation Agency (NIA)

• • Investigating for terror funding, espionage and extremist modules

With warm wishes,
CA Satish Agarwal, New Delhi