A sessions court in Mumbai has granted bail to one accused while denying it to another in the largest digital arrest scam, which involved the siphoning of over Rs 58 crore from a retired pharmaceutical executive. The court distinguished between a suspected mastermind with international connections and a facilitator, against whom the evidence was primarily based on inadmissible statements from co-accused individuals.
Court's Observations on Mastermind
Judge N.V. Jiwane took a stern view of the plea filed by Mohammad Arif, who was allegedly instrumental in transferring nearly Rs 2.5 crore of the scam proceeds. The judge noted that the allegations and material collected during the investigation indicated that Arif was one of the masterminds involved in the siphoning of funds obtained from the complainant through a fake digital arrest scam.
Bail Granted to Facilitator
In a separate order, the court granted bail to accused Ankitkumar Shah. The prosecution had relied heavily on a statement made by co-accused Abdul Nasir Abdul Karim Khulli to allege that Shah facilitated the transfer of Rs 25 lakh in tainted money. However, the court observed a lack of corroborating physical or electronic evidence.
The judge stated that the statement of an accused cannot be used against a co-accused at the stage of anticipatory or regular bail. Such statements, whether exculpatory or inculpatory, are subject to the provisions of the Indian Evidence Act and lack evidentiary value against a co-accused at the bail stage. Therefore, the reply filed by the investigating officer relying on the statement of the co-accused to show the role played by Shah could not be relied upon.
Furthermore, despite a vast collection of WhatsApp chat histories in the chargesheet, there was nothing to link Shah's specific mobile number to the illegal transactions. Noting that the investigation is complete and the trial is unlikely to conclude soon, the court allowed Shah's release on a personal bond of Rs 50,000 with strict conditions, including a ban on foreign travel.
The Scam Details
The informant reported receiving a series of calls in August 2025 from individuals posing as officials from the Telecom Regulatory Authority of India (TRAI) and the Central Bureau of Investigation (CBI). The fraudsters claimed the informant was involved in illegal activities linked to the chairman of a now-defunct airline and placed him and his wife under digital arrest. Under extreme duress and the threat of legal action, the couple was coerced into transferring the amount into various bank accounts over several weeks.
In Arif's case, the prosecution argued that his SIM card was used for net banking to move funds and that his phone contained evidence of Binance cryptocurrency transactions and contact with overseas syndicates. The judge noted that the accused Ramaiyya Bodboina is still absconding and needs to be arrested. If Arif is released on bail, there is every possibility that he will assist the absconding accused in avoiding investigation.
