Panaji: The Enforcement Directorate (ED) has arrested three more people in a money laundering investigation linked to an alleged pan-India cyber fraud network involving transactions worth around ₹30,000 crore. With the latest arrests, the total number of people arrested in the case has risen to five. Investigators are now tracing an extensive financial network involving multiple companies, bank accounts, cash deposits and foreign exchange transactions across several states.
Three More Arrested in Money Laundering Probe
According to ED sources, Bhushan Suryakant Moye, Vilas Narayan Pawar and Shailesh Dagdu were arrested on Thursday under the provisions of the Prevention of Money Laundering Act (PMLA). A special court in Panaji has remanded the three accused to ED custody until September 1.
The agency had earlier arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed, both from Mumbai, on August 23. They remain in ED custody.
Investigation Began With ₹2.60 Crore Digital Arrest Scam
The investigation began after the Goa Police registered an FIR on June 9, 2025. The case relates to a Goa-based woman who was allegedly subjected to a “digital arrest” by cyber fraudsters and forced to transfer ₹2.60 crore into multiple “Secret Supervision Accounts” between May 21 and June 2, 2025.
Digital arrest is a cyber fraud technique in which criminals impersonate police officers, investigators or other government officials and threaten victims through audio or video calls. Victims are falsely told that they are involved in criminal cases, money laundering or other offences and are pressured into transferring money to accounts controlled by the fraudsters.
The government has clarified that digital arrest is not a legally recognised procedure in India. Victims of such fraud are advised to immediately report the matter through the national cyber helpline 1930 or the National Cyber Crime Reporting Portal.
₹27,850 Crore in Transactions Under Scanner
The ED said the money allegedly defrauded from the Goa woman was deposited into around 400 bank accounts. The funds were subsequently withdrawn in cash and converted into foreign currency through RBI-licensed money changers.
The financial trail led investigators to an interconnected network of entities involved in commodity trading, travel and foreign exchange businesses.
According to the agency, these entities carried out banking transactions worth more than ₹27,850 crore and received cash deposits totalling ₹2,904 crore. Of this, ₹584.70 crore was deposited through 61,448 bulk note acceptance machine transactions across multiple locations in the country.
300 Cyber Fraud Complaints Linked to Network
The bank accounts linked to these entities have also been connected to around 300 cyber fraud complaints and 163 FIRs registered across 20 states and Union Territories.
The complaints collectively involve reported losses of ₹417.49 crore. The findings suggest that the Goa case was allegedly part of a much larger financial network rather than an isolated cyber fraud incident.
Algoritha Security Launches ‘Make in India’ Cyber Lab for Educational Institutions
Cash and Foreign Exchange Trail Examined
The ED conducted two rounds of searches in Goa and Mumbai in July and carried out another search operation on August 21. During these operations, the agency seized around ₹3.25 crore in cash.
Investigators are now examining the links between bank transactions, company directors, cash deposits and foreign exchange conversions to identify the ultimate beneficiaries of the suspected proceeds.
Shell Companies Used to Move Funds
The investigation has also revealed the alleged use of shell and dummy companies. According to the ED, drivers and employees living in single-room accommodations were shown as directors of some of these entities.
Investigators suspect that the companies were used to conceal the identities of the actual beneficiaries and move the alleged proceeds of cyber fraud through multiple layers of financial transactions.
ED Traces Wider Pan-India Cyber Fraud Network
The expanding money trail has brought the case under wider scrutiny as the ED seeks to establish the complete chain from the alleged cyber fraud victims to the companies and individuals who allegedly handled and laundered the proceeds.
The agency is continuing to examine financial records, banking transactions, company structures and other evidence to determine the full extent of the alleged network and identify those ultimately responsible for handling the suspected proceeds.
About the author — Ananya Aradhya writes on cybercrime, fraud, scams, cybersecurity, digital safety, and emerging threats. Her work also covers major criminal cases, financial frauds, consumer scams, and stories that highlight risks affecting people in the real and digital world.
