Mumbai, Feb 3 (IANS): One accused was arrested Saturday and a hunt launched for 11 others in connection with a Rs.1 crore illegal transfer from a businessman's bank account here, police said.

"We have arrested one person in this connection and are on the lookout for another 11 who are suspected to be involved in this fraud," Additional Police Commissioner (East) Quaiser Khalid told IANS.

The financial crime - considered to be among the biggest online banking and business fruads - took place Thursday in Mulund in north Mumbai.

Ankur Korane, 29, a director in a cosmetic company, suspected something amiss that morning when he received 12 SMSes informing him of debits of Rs.12 lakh, Rs.5 lakh, Rs.15 lakh and other amounts totalling Rs.1 crore.

After the first two messages, Korane asked his bank to freeze his account but was told to furnish a police complaint.

Korane went to Mulund police station and lodged his complaint of cheating, fraud and impersonation.

Police said that the Rs.1 crore siphoned off from his account was transferred to 12 different bank accounts all over India.

Investigators suspect that Korane's e-banking details may have been stolen to perpetrate the fraud.