India, Aug. 28 -- A private bank official and his friend, both working as mule account operators for a cybercrime gang, allegedly siphoned off Rs.17 lakh from the gang leader and used it to repay personal loans and pay off goons sent by the gang to recover the money, police said on Wednesday.

Police said the Rs.17 lakh was part of Rs.51 lakh fraudulently extracted from a retired IAS officer living in Raisina Residency in Sector-59, after being held under a "digital arrest" by cybercriminals posing as police officials.

Investigators said that the accused even paid Rs.1 lakh each to three goons to avoid getting assaulted when they approached the duo to recover the money.

The scam came into light after the police arrested the three accuse...