Daijiworld Media Network - Mumbai
Mumbai, Oct 26: The Enforcement Directorate (ED) has arrested a Mumbai-based advocate in connection with a digital arrest fraud in which a Goa couple was allegedly duped of Rs 2.6 crore, and secured his custody till October 29 from a Special Court under the Prevention of Money Laundering Act (PMLA), an official said on Monday.
The ED’s Panaji Zonal Office arrested advocate Rashesh Bharatkumar Upadhyay, alias Rashesh Shah, on October 24 under the provisions of the Prevention of Money Laundering Act, 2002, the official said in a statement.
Upadhyay was intercepted at the boarding gate of Chhatrapati Shivaji Maharaj International Airport in Mumbai while allegedly attempting to leave the city on an early-morning connecting flight to Delhi without a return booking. The ED said the interception was made possible through the timely assistance of Mumbai Customs and the Central Industrial Security Force (CISF).
The investigation began following an FIR registered by Goa Police in connection with a digital arrest fraud targeting a couple in the state.
According to the ED, fraudsters impersonating officials of the Telecom Regulatory Authority of India and the Central Bureau of Investigation placed the woman under continuous video surveillance, showed her a forged Supreme Court order and coerced her into transferring approximately Rs 2.6 crore to bank accounts falsely described as “Secret Supervision Accounts”.
The agency traced the alleged proceeds of crime through more than 400 mule accounts to a network of commodity, travel and foreign-exchange companies controlled by Fahim Moin Hussain Sayed and Naim Mueen Sayyed through dummy directors.
The network allegedly carried out banking transactions worth nearly Rs 28,000 crore and deposited around Rs 2,900 crore in cash. Its bank accounts have reportedly figured in more than 300 victim complaints and over 160 FIRs across 20 states and Union Territories, involving reported losses exceeding Rs 400 crore, the ED said.
Investigators identified Upadhyay as a key intermediary in the network. According to the agency, whenever law enforcement authorities froze bank accounts linked to the network following cyber fraud complaints, he allegedly arranged for their release by paying cash bribes to certain suspected officials through angadiyas, or informal cash couriers.
The ED alleged that Upadhyay determined the amounts, collection points and onward payments. According to the agency, he admitted to arranging the unfreezing of around 100 bank accounts for various agents, including one instance involving a payment exceeding Rs 60 lakh.
By allegedly facilitating access to frozen funds, Upadhyay helped the network continue operating its money-laundering infrastructure linked to cyber fraud across the country, the agency claimed.
The ED further alleged that he continued his dealings even after searches were conducted by the agency, including in relation to accounts frozen by the ED. He allegedly deleted chats with co-accused persons and switched off all his known mobile numbers before attempting to leave Mumbai.
Although enrolled as an advocate, Upadhyay had never appeared in court or filed any vakalatnama on behalf of the co-accused or their companies, the ED said. The agency alleged that he misused his professional standing to broker bribes and facilitate the release of fraud proceeds.
The ED also maintained that the protection available to communications between advocates and their clients does not extend to communications made in furtherance of an illegal purpose or those indicating the commission of a crime or fraud.
This is the seventh arrest in the case. The ED had earlier arrested six persons, including the alleged controllers of the network, Fahim Moin Hussain Sayed and Naim Mueen Sayyed, as well as agents accused of supplying banking entries to the network and arranging the release of frozen accounts.
Further investigation is underway to identify the officials who allegedly received the bribes, the angadiyas and other intermediaries involved, and to trace the full extent of the proceeds of crime, the agency said.