ED Seizes Rs 1.76 Crore in Jalandhar in Major Cyber-Fraud Money Laundering Investigation
The Enforcement Directorate's Jalandhar zonal office has taken decisive action by issuing a provisional attachment order for a bank account containing Rs 1.76 crore. This move is part of an extensive investigation into how fraudsters laundered money they had extorted from prominent textile industrialist S P Oswal in 2024.
Provisional Attachment Under PMLA
The attachment order, dated February 14, has been executed under the stringent provisions of the Prevention of Money Laundering Act (PMLA). The ED initiated this investigation based on a First Information Report (FIR) registered at the cybercrime police station in Ludhiana, highlighting the seriousness of the cyber-fraud case.
Investigation conducted so far has revealed that proceeds of crime generated from eight other cyber-crimes were also credited into the bank account of M/s Frozenman Warehousing and Logistics on August 28, 2024, the ED stated in an official release.
Complex Web of Fraud and Money Laundering
ED investigations have uncovered that during the digital arrest of Oswal, fraudsters impersonating officers of the Central Bureau of Investigation managed to extort a staggering Rs 7 crore from him. The probe further revealed that these illicit funds were routed through multiple mule accounts operated by the accused individuals, Rumi Kalita and Arpit Rathore.
It was determined that Kalita established an association with Atanu Choudary and utilized the bank account belonging to his entity, M/s Frozenman Warehousing and Logistics, to launder the illicit proceeds. Funds derived from other cyber-crimes and digital arrest cases were also credited into the accounts of M/s Frozenman Warehousing and Logistics and M/s Rigglo Ventures Pvt Ltd, the ED emphasized.
Sophisticated Money Laundering Techniques
The proceeds of crime were subsequently transferred to multiple mule bank accounts in a systematic manner, thereby facilitating the diversion and concealment of the cyber-crime proceeds. A portion of these illicit funds was further layered through various shell entities and routed outside India by adopting trade-based money laundering mechanisms.
The remaining proceeds were utilized for acquisition of virtual digital assets, adding another layer of complexity to the money laundering scheme. The attached bank balance of Rs 1.76 crore was lying in the bank account of one of the mule entities, M/s Mrityunjya Multitrade, and this bank account was specifically used for receiving and routing proceeds of crime generated from various cyber-crimes and digital arrests.
Exploitation of Vulnerable Individuals
Further investigation revealed that multiple mule bank accounts were utilized for laundering the proceeds of cyber-crime. These mule accounts were opened by inducing economically vulnerable individuals with false promises of arranging loans or providing employment, the ED disclosed, shedding light on the predatory tactics employed by the fraudsters.
Arrests and Judicial Custody
Earlier, searches were conducted on January 31, December 22, and December 31, 2025, in connection with this case. The accused Rumi Kalita was arrested on December 23 last year, while accused Arpit Rathore was also arrested on December 31. Both accused are presently under judicial custody as the investigation continues to unfold.
The ED's actions underscore the agency's commitment to tackling sophisticated financial crimes and money laundering operations that exploit digital platforms and vulnerable populations.
