The Enforcement Directorate (ED) on Friday, 16 October 2026, filed a charge sheet before a special Prevention of Money Laundering Act (PMLA) court in Ahmedabad, Gujarat, in a digital arrest fraud case in which two elderly victims were allegedly cheated of a combined ₹2.95 crore by fraudsters impersonating Central Bureau of Investigation (CBI) and police officers. Investigators traced the stolen money through more than 50 mule bank accounts, angadiya networks, cryptocurrency channels, and even insurance premium payments — a web of layering methods that the agency says was designed to make the funds untraceable.

How the Fraud Was Executed

According to the ED's Ahmedabad Zonal Office, the two victims were threatened with false arrests and coerced into transferring ₹1.15 crore and ₹1.80 crore, respectively, into mule bank accounts linked to entities named Quality Fruit Traders and Shivam Charitable Trust. The investigation was initiated on the basis of multiple FIRs registered by cyber crime police in Ahmedabad and Mumbai.

Digital arrest scams typically involve fraudsters calling victims while posing as law enforcement officials, fabricating accusations of serious crimes, and demanding fund transfers to avoid fictitious arrest. The use of elderly victims is a recurring pattern in such cases, with perpetrators exploiting limited digital literacy and a fear of law enforcement.

A Complex Money Trail

The ED found that once the money entered the mule account network, it was rapidly dispersed through cash withdrawals at multiple locations across India and Dubai. Investigators also uncovered the use of angadiya networks — informal hawala-style couriers common in western India — as well as the procurement of cryptocurrency to further obscure the movement of funds.

Notably, a credit card was embedded in the laundering chain: ₹30 lakh was reportedly routed to a card endorsed by an insurance agent, issued in the name of a third person but operated by another individual. The funds were then immediately deployed to pay premiums on insurance policies belonging to third parties — a method the ED described as helping 'integrate the proceeds of crime into the legitimate financial system'.

The mule accounts involved in this case were also linked to 396 pending cybercrime complaints on the Indian Cyber Crime Coordination Centre (I4C) portal, suggesting the same network may have been used in fraud operations well beyond this case.

Assets Attached

As part of the investigation, the ED has attached a flat in Surat valued at ₹30 lakh and three fixed deposits worth ₹8 lakh belonging to the accused. The total value of assets attached in the case stands at ₹38 lakh. The agency said further investigation is underway.

Broader Context and What It Signals

This case is among a string of digital arrest fraud prosecutions that the ED has pursued under the PMLA in recent months, reflecting a broader enforcement push against cyber-enabled financial crime. The layering complexity — spanning mule accounts, hawala conduits, crypto, and insurance products — indicates a professionalised operation rather than an opportunistic scam. Critics have pointed out that despite such prosecutions, asset recovery often covers only a fraction of the defrauded amount; here, ₹38 lakh in attachments represents roughly 13% of the ₹2.95 crore total fraud.

The outcome of the PMLA proceedings and any additional accused named in follow-on charge sheets will be closely watched as a test of the ED's capacity to dismantle multi-layered cyber fraud networks.