The Enforcement Directorate (ED) has arrested an advocate for allegedly helping a nationwide cyber fraud network regain access to frozen bank accounts by routing bribes through cash intermediaries. The money-laundering investigation concerns a network whose linked accounts allegedly recorded nearly ₹28,000 crore in banking transactions and approximately ₹2,900 crore in cash deposits.
Rashesh Upadhyay, also known as Rashesh Shah, was intercepted at Mumbai’s Chhatrapati Shivaji Maharaj International Airport on Saturday, October 24, while preparing to board a flight to Delhi. His arrest brings the number of people held in the investigation to seven.
The officers from the ED’s Panaji unit located Upadhyay at a boarding gate with assistance from Customs personnel and the Central Industrial Security Force. He was subsequently taken to Panaji, where a special court under the Prevention of Money Laundering Act remanded him to ED custody until October 29.
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ED Alleges Payments Were Routed to Secure Release of Frozen Accounts
In its submissions seeking custody, the ED allegedly identified Upadhyay as an important intermediary in the operation, particularly when police complaints led to the freezing of bank accounts associated with the suspected network.
The agency claimed that he arranged payments to officials to facilitate the release of these accounts. The alleged payments were routed through “Angadiyas”, private intermediaries who handle cash transfers.
Investigators are examining the identities of the officials who allegedly received money, the intermediaries who moved it, and the circumstances in which the frozen accounts became operational again.
The ED also alleged that although Upadhyay was enrolled as an advocate, he had neither appeared for the accused persons or their companies nor filed a vakalatnama on their behalf. A vakalatnama is the document through which a client authorises an advocate to represent them in legal proceedings.
These assertions form part of the agency’s allegations and remain subject to judicial examination.
₹2.60 Crore Fraud Against Goa Woman Triggered Investigation
The investigation originated from an FIR registered by Goa Police on June 9, 2025, after a woman allegedly lost ₹2.60 crore to fraudsters using the so-called “digital arrest” method.
According to the ED’s account, the woman was pressured into transferring money to several bank accounts between May 21 and June 2, 2025. The subsequent examination of the fund trail allegedly revealed connections to a much larger network of accounts and companies.
In such scams, offenders impersonate investigating officers or other authorities and use threats during telephone or video calls to persuade victims to transfer money.
Funds Allegedly Passed Through 400 Mule Accounts
The agency alleged that the money obtained from the Goa complainant was moved through approximately 400 mule accounts associated with commodity businesses, travel concerns and foreign exchange companies.
According to investigators, these entities were operated through dummy directors. The accounts allegedly served as channels for receiving and transferring funds before their withdrawal in cash.
The ED further claimed that cash withdrawn from the accounts was converted into foreign currency through money changers licensed by the Reserve Bank of India. Investigators are examining the movement of these funds to establish the alleged laundering trail and identify those who ultimately benefited.
Complaints Span 20 States and Union Territories
Accounts allegedly connected to the network have surfaced in more than 300 victim complaints and over 160 FIRs across 20 states and Union Territories, according to the agency. The losses reported in these complaints exceed ₹400 crore.
The financial figures cited in the investigation describe different aspects of the alleged operation. Nearly ₹28,000 crore represents the banking transactions under scrutiny, while approximately ₹2,900 crore relates to cash deposits. These amounts should be distinguished from the losses exceeding ₹400 crore reported in the linked complaints.
The investigation is continuing into the alleged use of business entities, banking channels, cash intermediaries and foreign currency conversion to move the suspected proceeds of cybercrime.
“Digital Arrest” Has No Legal Basis
“Digital arrest” is a fraudulent tactic, with no provision for such arrest under Indian criminal law. Fraudsters use claims of official authority to frighten victims into remaining on calls, following instructions and transferring money.
People who encounter suspected cyber financial fraud can report it immediately by calling 1930 or through the National Cyber Crime Reporting Portal. The Ministry of Home Affairs’ Indian Cyber Crime Coordination Centre identifies these as official reporting channels.
Upadhyay’s alleged involvement, including the claims concerning payments to officials and the release of frozen accounts, remains under investigation. The custody order does not constitute a finding of guilt.
