Panaji: The Enforcement Directorate (ED), Panaji Zonal Office, has conducted extensive search operations across multiple states in connection with a large-scale ‘digital arrest’ cyber fraud and money laundering case, resulting in the seizure of cash, foreign currency, gold and other assets totally valued at around Rs 5 crore.
The searches, carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002, stem from an FIR registered by the Goa cyber crime police station in which a senior citizen was allegedly defrauded of approximately Rs 2.60 crore through a sophisticated ‘digital arrest’ scam.
The ED seized Indian currency worth approximately Rs 1.5 crore, foreign currency valued at around Rs 2 crore and gold and jewellery worth Rs 1.5 crore. A high-end SUV and other movable assets were also seized.
Officials also recovered mobile phones, laptops and documents allegedly containing crucial evidence regarding fund movement. In addition, several bank accounts belonging to individuals, shell companies and forex entities suspected to be part of the laundering network have been frozen under PMLA to prevent dissipation of the proceeds of crime.
According to ED, the victim was allegedly placed under a fabricated ‘digital arrest’ by fraudsters impersonating as officials of government agencies. Using forged documents and continuous video surveillance, the syndicate allegedly coerced the victim into transferring large sums of money into bank accounts controlled by the accused.
The investigation has revealed an organised money laundering network that allegedly channeled cyber crime proceeds out of India. Investigators found that the fraudulently obtained money was first routed through ‘mule’ bank accounts opened in the names of individuals and dormant entities before being fragmented and transferred through hundreds of shell and conduit companies masquerading as commodities, enterprises and trading firms.
The ED further stated that the laundered funds were reintroduced into formal banking system through structured cash deposits using bulk cash deposit machines before being routed to foreign exchange companies.
Investigators suspect that the syndicate converted the tainted Indian currency into US dollars and other foreign currencies through fabricated invoices before physically moving or spending the money abroad, effectively concealing its criminal origin.
An ED official said the searches targeted the operators, controllers and conduit entities responsible for laundering the proceeds generated through the cyber fraud. Further investigation is under way to identify the full extent of the network and trace additional beneficiaries.
