MUMBAI, Aug 24: The Enforcement Directorate has arrested two men in connection with a money laundering investigation into an alleged pan-India cyber fraud network involving transactions worth around Rs 30,000 crore, officials said on Monday.
The agency arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed in Mumbai on Sunday as part of its probe into a wider digital arrest racket.
The investigation began after a woman in Goa was allegedly defrauded of Rs 2.60 crore between May and June 2025. According to the agency’s findings, cybercriminals allegedly coerced her into transferring the money to accounts described as “Secret Supervision Accounts” during a fake digital arrest.
The accused were subsequently produced before a special Prevention of Money Laundering Act court in Mumbai. The court granted the agency transit remand, allowing investigators to take them to Panaji, where the original case was registered.
The ED is expected to present them before a special court in Panaji and seek custodial interrogation to investigate the alleged financial network and identify other individuals involved.
Money trail reveals large-scale transactions
Investigators found that funds allegedly obtained from the victim were routed through bank accounts before being withdrawn as cash and converted into foreign currency through money changers licensed by the Reserve Bank of India.
According to sources, the agency has identified suspected bank transactions of nearly Rs 27,000 crore and cash dealings estimated at another Rs 3,000 crore linked to the network.
The alleged operation reportedly features in about 300 complaints and 150 to 160 FIRs registered across 20 states and Union Territories.
While the total value of transactions under investigation is estimated at Rs 30,000 crore, the reported amount actually defrauded from victims is around Rs 4,000 crore, according to the sources.
Searches uncover cash and shell companies
The ED has conducted two rounds of searches at multiple locations in Goa and Mumbai as part of the investigation.
During searches conducted in July and again on August 21, investigators reportedly seized approximately Rs 3.25 crore in cash.
The agency has also traced the involvement of alleged shell or dummy companies used to facilitate the movement of funds. Investigators found that some of these entities listed drivers and low-income employees living in single-room accommodations as company directors.
Officials suspect that the arrangement was used to conceal the identities of the individuals controlling the businesses and handling the illicit proceeds.
Probe focuses on wider cybercrime network
The arrests are part of the ED’s broader effort to track the financial infrastructure behind digital arrest scams, in which victims are allegedly threatened with fabricated criminal cases and pressured into transferring money.
Investigators are now examining the bank accounts, companies and currency transactions connected to the network to establish the complete money trail and determine the role of other suspected members.
The agency’s custodial interrogation of the two arrested individuals is expected to focus on the operation of the alleged network, the movement of funds and the identities of those controlling the accounts and shell entities.