A sessions court in Mumbai has granted bail to two individuals implicated in a massive Rs 58 crore digital arrest fraud case, one of the largest such scams in India. The case involves a retired pharmaceutical executive who was threatened and coerced into transferring funds to various bank accounts between August and September 2025.
Bail Granted to Chiragkumar Chaudhari
On Monday, the court granted relief to Chiragkumar Chaudhari (30), who had spent seven months in custody. The judge found merit in the argument that no financial transaction or monetary benefit was directly traced to his personal accounts. The court observed, "The prosecution has not filed any documentary evidence along with the chargesheet to show the nexus of the applicant with other accused. There is no evidence collected against the applicant that he monetarily benefited from the alleged offence or any financial transaction is traced out in his bank account."
Chaudhari was accused of acting as a facilitator by providing a company's bank account to siphon off Rs 25 lakh of the extorted money. Police alleged that he received commissions in cash or cryptocurrency. His lawyer, Arjun V Lingalod, argued that the case against him relied solely on the statement of a co-accused, which lacked evidentiary value at the bail stage.
Bail Granted to Zaid Mughal
In a separate order on Tuesday, the court granted bail to Zaid Mughal (26), a cryptocurrency trader arrested in November 2025. The court noted that the prosecution failed to show that he was a conspirator in the initial fraud. Through his lawyer, Nazneen Khatri, Mughal claimed he was a legitimate currency trader on an online crypto exchange and had no knowledge that the Rs 24 lakh traced to his account were proceeds of the crime.
The court stated, "There is nothing placed on record to show that the applicant received the investment from the various entities through which money was routed, knowing that the said investment is the proceeds of the digital arrest fraud. Merely dealing in cryptocurrency is not an offence."
Court Observations
In both orders, the court observed that since the investigation has been completed and the chargesheet filed, further custodial interrogation is unnecessary. It also noted that many other co-accused have already been released on bail.
The case highlights the growing trend of digital arrest frauds, where victims are threatened via phone or video calls and coerced into transferring large sums of money. The bail decisions underscore the importance of direct evidence linking suspects to financial transactions in such cases.
