The Enforcement Directorate (ED) has arrested an advocate at Mumbai’s Chhatrapati Shivaji Maharaj International Airport in connection with a money laundering investigation involving an alleged nationwide cyber fraud and digital arrest network. The syndicate is suspected of handling banking transactions worth nearly ₹28,000 crore, with more than ₹2,900 crore allegedly deposited in cash, according to the agency.
The accused, identified as Rashesh Upadhyay alias Rashesh Shah, was intercepted by a team from the ED’s Panaji unit at an airport boarding gate on Saturday while preparing to board a flight to Delhi.
Officials from Customs and the Central Industrial Security Force (CISF) assisted the ED in apprehending him.
Upadhyay was subsequently taken to Panaji and produced before a special court under the Prevention of Money Laundering Act (PMLA). The court remanded him to ED custody until October 29.
His arrest is the seventh made by the agency in the investigation.
Goa Digital Arrest Fraud Led to Nationwide Investigation
The money laundering investigation originated from an FIR registered by Goa Police on June 9, 2025, following a complaint by a Goa-based woman who was allegedly cheated of ₹2.60 crore through a digital arrest scam.
Investigators found that the victim had been placed under a purported digital arrest by cybercriminals and persuaded to transfer money into multiple mule bank accounts between May 21 and June 2, 2025.
The ED subsequently expanded its investigation into the financial network allegedly responsible for receiving and transferring the fraudulent funds.
According to the agency, money obtained from the Goa victim was routed through approximately 400 mule accounts associated with commodity, travel and foreign exchange companies operated through dummy directors.
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The funds were subsequently withdrawn in cash and converted into foreign currency through money changers licensed by the Reserve Bank of India.
ED Alleges Advocate Helped Release Frozen Bank Accounts
During remand proceedings, the ED described Upadhyay as a “key node” in the alleged cybercrime network.
The agency alleged that whenever bank accounts associated with the syndicate were frozen following police complaints, Upadhyay arranged for their release by bribing officials of the agencies concerned.
Investigators claimed that these payments were routed through Angadiyas, individuals operating within a private cash-based banking network.
The ED further alleged that Upadhyay had enrolled as an advocate but had never appeared in court or filed a Vakalatnama on behalf of the accused persons or their companies.
The allegations form part of the agency’s ongoing money laundering investigation and remain subject to judicial scrutiny.
Over 300 Complaints Linked to Suspected Cyber Fraud Network
The ED said the alleged syndicate handled banking transactions amounting to nearly ₹28,000 crore and deposited approximately ₹2,900 crore in cash.
Investigators identified links between the network’s bank accounts and more than 300 victim complaints, along with over 160 FIRs registered across 20 states and Union Territories.
The reported financial losses associated with these complaints exceeded ₹400 crore, according to the agency.
The ED is now working to identify officials suspected of accepting bribes, trace the Angadiyas and other intermediaries allegedly involved, and establish the complete movement of suspected criminal proceeds.
The case also involves digital arrest fraud, in which criminals impersonate law enforcement officials through audio or video calls, threaten victims with legal action and pressure them into transferring money.
Authorities have reiterated that digital arrest has no legal basis in India. Victims of such scams can report incidents through the national cybercrime helpline, 1930, or the official portal, cybercrime.gov.in.
What Does This Mean?
The investigation highlights how cyber fraud proceeds can move through hundreds of mule accounts, shell companies and cash-based intermediaries. The ED’s allegations concerning the release of frozen accounts also raise serious questions about possible institutional complicity, while the scale of transactions underscores the challenges of tracing illicit funds across multiple states.
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