Team Goemkarponn
PANAJI: The Directorate of Enforcement (ED), through its Panaji Zonal Office, has carried out search operations across multiple States in connection with a major “digital arrest” cyber fraud case in which a senior citizen was allegedly cheated of nearly ₹2.60 crore.
The searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002, following an investigation launched on the basis of an FIR registered by the Cyber Crime Police Station.
According to the ED, the victim was allegedly trapped in a fake “digital arrest” by fraudsters posing as government officials. Using forged documents, intimidation and continuous video monitoring, the accused allegedly coerced the victim into transferring large sums of money to bank accounts controlled by the syndicate.
The investigation has uncovered an organised money laundering network that allegedly converted the proceeds of cyber fraud into foreign currency before moving the funds out of India.
The ED said the syndicate initially transferred money received from victims into multiple “mule” bank accounts opened in the names of individuals and dormant entities. The funds were then rapidly layered through hundreds of bank accounts and shell companies masquerading as trading, commodity and enterprise firms with no genuine business activity.
Investigators further found that the money was reintroduced into the formal banking system through structured cash deposits made using Bulk Note Acceptor (BNA) machines. The funds were subsequently routed to foreign exchange companies, including some licensed Full-Fledged Money Changers (FFMCs), which allegedly accepted the money against fabricated invoices before providing equivalent amounts in foreign currency.
According to the ED, this process enabled the syndicate to convert illegally obtained Indian currency into US Dollars and other foreign currencies, effectively concealing the origin of the funds and facilitating their movement outside the country.
During the raids, officials seized approximately ₹1.5 crore in Indian currency, foreign currency valued at around ₹2 crore, and gold and jewellery worth nearly ₹1.5 crore. A Toyota Fortuner, along with other movable assets, was also seized.
The agency also recovered several mobile phones, laptops and financial records that are believed to contain crucial evidence regarding the operation of the syndicate and the movement of illicit funds.
Additionally, multiple bank accounts belonging to individuals, shell companies, forex entities and conduit firms suspected of being involved in the laundering network have been frozen under the provisions of the PMLA to prevent further diversion of suspected proceeds of crime.
The ED said the seized digital devices, documents and frozen bank accounts are being examined as part of the ongoing investigation. Officials added that further investigation into the case is in progress.
