In a significant crackdown, the Enforcement Directorate's (ED) Jalandhar zonal office has successfully dismantled a highly organized international cyber-fraud syndicate. The operation led to the arrest of a key operative, Arpit Rathore, who is centrally linked to the sophisticated "digital arrest" and extortion of a staggering ₹7 crore from prominent Ludhiana industrialist S P Oswal.
The New Year's Eve Raid and Arrest
Acting on precise intelligence, ED officials conducted a targeted raid in Kanpur on New Year's Eve, culminating in the apprehension of Arpit Rathore. During the search, authorities seized ₹14 lakh in unexplained cash along with a trove of incriminating digital evidence, including devices and records that are pivotal to the investigation. This arrest marks a crucial breakthrough in an extensive money-laundering probe that has unraveled a complex web of financial deception.
The Modus Operandi: Digital Arrest and Money Laundering
The case originated from a report filed at a cybercrime police station in Ludhiana. It detailed how fraudsters, impersonating officers from the Central Bureau of Investigation (CBI), placed industrialist S P Oswal under a fake "digital arrest" to coerce and extort the massive sum. The ED probe has since expanded, incorporating nine additional First Information Reports (FIRs) against the same criminal network, which is accused of defrauding other victims of an added ₹1.7 crore using similar cyber-scam tactics.
Investigators found that the syndicate operated with a corporate-level structure. Illicit funds were first channeled into bank accounts held by shell companies, specifically named as Frozenman Warehousing and Logistics and Rigglo Ventures. Rathore's alleged role was to coordinate the "layering" process, instructing associates to disperse the money through a sprawling network of over 200 "mule" bank accounts to obscure its origin and evade law enforcement.
International Links and Cryptocurrency Payments
The ED investigation uncovered that Arpit Rathore maintained active communication with foreign associates, facilitating the transfer of the illegal proceeds overseas. For providing these mule accounts and managing the local logistics of the scam, Rathore was reportedly compensated in both Indian rupees and the cryptocurrency USDT (Tether). His arrest follows the December detention of an accomplice, Rumi Kalita, who remains in federal custody.
After being produced before a magistrate in Kanpur and granted a transit remand, Rathore was moved to Jalandhar. A special court there has placed him in ED custody until January 5 for intensive questioning.
Ongoing Probe and Broader Implications
As the investigation progresses, authorities are intensifying efforts to trace the final destination of the laundered money and identify the foreign nationals who masterminded the operation. This case has starkly highlighted the escalating threat of "digital arrest" scams in India, where criminals brazenly exploit the names of revered federal agencies to terrorize and rob high-net-worth individuals. The bust serves as a stern warning to such transnational cybercriminal networks while underscoring the challenges faced by financial crime units in the digital age.
