Lucknow Police have uncovered a sprawling online betting scam that led to the seizure of ₹1.07 crore in cash and the arrest of 16 individuals, making it the city’s largest-ever cyber fraud bust. The operation was conducted at a residential flat in Jankipuram’s Smriti Apartments, where officers found a sophisticated setup involving 103 mobile devices, 79 ATM cards, and 22 bank passbooks.
At the center of the scam was a fake betting platform named “Lotus Gaming”, promoted through private Telegram groups. Victims were enticed with small rewards to build trust, followed by requests to deposit larger sums through apps that mimicked legitimate betting portals. These funds were then funneled into accounts operated by the fraud ring.
The suspects, many in their twenties and hailing from Chhattisgarh and Gujarat, were tasked with both front-end operations and backend financial handling. Police say multiple accounts were opened under false identities, often using Aadhaar cards obtained from low-income individuals in exchange for cash.
High-tech network used to launder funds across states
The scam was structured in two tiers. The first involved agents luring users and managing communications. The second handled financial transfers, laundering deposits through UPI, ATMs, and even cryptocurrency.
Equipment recovered at the scene included note-counting machines, forged documents, and POS systems used to route transactions through multiple layers. Officials stated that money was withdrawn and transferred rapidly to avoid detection and that backend controllers operated largely from other states.
According to Commissioner Amrendra K. Sengar, the accused used rented or fake bank accounts to cycle funds before withdrawing them in cash, making it harder to trace the money trail.
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Wider network under investigation as authorities trace links
An FIR has been filed under multiple sections of the Bharatiya Nyaya Sanhita and the IT Act. Police have announced a reward of ₹1 lakh for the team that led the operation and are now focused on identifying the masterminds behind the platform and those supplying fake documents and accounts.
The suspects include students, unemployed youth, and tech-savvy intermediaries. Investigators are analysing the seized digital devices and financial records to map the full scope of the operation and its interstate linkages.
Authorities expect the investigation to widen, with more arrests likely in the coming weeks as digital forensics continues.
