The Enforcement Directorate (ED) has arrested two alleged cyber-fraud operators in Mumbai in connection with a suspected nationwide network of commodity, trading, travel and forex entities that allegedly handled fraudulent banking transactions exceeding ₹27,850 crore. The accused, identified as Fahim Sayed and Naim Sayyed, were arrested by the ED’s Panaji zonal office on Sunday.
The arrests followed an investigation into an alleged “digital arrest” fraud in which a woman from Goa was reportedly coerced into transferring ₹2.60 crore between May 21, 2025, and June 6, 2026. According to the ED, the victim was falsely told that the accounts receiving her money were “secret supervision accounts”.
The agency has alleged that the victim’s funds were moved within hours through dormant and newly opened bank accounts before being fragmented across more than 400 beneficiary accounts. The trail subsequently led investigators to an interconnected network of entities operating in commodity trading, travel, foreign exchange and related businesses.
Network linked to transactions exceeding ₹27,850 crore
According to the ED, the entities linked to the suspected network collectively carried out banking transactions exceeding ₹27,850 crore. The agency has also identified approximately ₹2,904 crore in cash deposits associated with the network.
Of this amount, around ₹584.70 crore was allegedly deposited through 61,448 transactions involving Bulk Note Acceptance Machines at multiple locations. Investigators are examining whether these transactions were used to layer or move proceeds allegedly generated through cyber fraud.
The ED said accounts belonging to the entities under investigation have surfaced in 330 victim complaints and 163 FIRs registered across 20 states and Union Territories. The complaints collectively involve a reported loss of approximately ₹417.49 crore.
In 101 of these complaints, investigators found that funds belonging to a single victim were allegedly transferred to two or more entities within the same network during the course of the same fraud.
₹3.25 crore cash seized during searches
The investigation has involved searches at multiple locations in Mumbai and Goa under Section 17 of the Prevention of Money Laundering Act. Searches were conducted at 20 premises on July 17, followed by further searches on August 21.
During these operations, the ED seized approximately ₹3.25 crore in cash. Investigators also recovered digital devices, financial records and statutory registers, which have been taken into custody as evidence.
The seized electronic material is expected to help investigators establish communication between the alleged operators, details of beneficiary accounts and the movement of funds across the suspected network.
Digital arrest case triggered wider probe
The investigation began with the alleged digital arrest of the Goa-based woman but subsequently expanded after investigators traced the movement of her funds through multiple layers of bank accounts.
The ED is now examining the alleged roles of Sayed and Sayyed in the wider network, including their connections with the commodity, trading, travel and forex entities. Investigators are also looking into whether the entities were used as fronts for receiving, layering and transferring proceeds allegedly generated through different types of cyber fraud.
The large number of complaints and FIRs across multiple jurisdictions has also brought the suspected financial network under wider scrutiny. The agency is expected to examine the digital evidence, banking records and seized documents to identify additional beneficiaries and determine the full extent of the alleged money trail.
The arrests and searches are part of an ongoing investigation, and further action will depend on the evidence gathered by the ED and the findings of its financial investigation.
