The Enforcement Directorate (ED) has arrested advocate Rashesh Upadhyay, also known as Rashesh Shah, in connection with an alleged money laundering network suspected of handling transactions worth nearly Rs 28,000 crore through cyber fraud, including digital arrest scams. The agency has arrested seven people so far in the case, which allegedly involved around 400 bank accounts, cash deposits of nearly Rs 2,900 crore and fraudulent transactions spread across several states.
Upadhyay was arrested at Chhatrapati Shivaji Maharaj International Airport in Mumbai on Saturday while he was preparing to travel to Delhi. An ED team from Panaji, with assistance from Customs officials and the Central Industrial Security Force (CISF), intercepted him at the departure gate.
He was subsequently taken to Goa and produced before a special court under the Prevention of Money Laundering Act (PMLA), which remanded him to ED custody until October 29.
Goa Woman's Complaint Triggered Investigation
According to the ED investigation, the case came to light after a woman in Goa allegedly lost Rs 2.60 crore to cybercriminals using the digital arrest scam.
Between May 21 and June 2, 2025, the woman was allegedly threatened by individuals posing as government officials and pressured into transferring money to several bank accounts. Following the complaint, Goa Police registered a First Information Report (FIR) on June 9, 2025.
Digital arrest scams involve fraudsters impersonating police officers, investigating agencies or other government officials through phone and video calls. They falsely claim that their targets are linked to criminal cases and threaten them with arrest, interrogation or legal action unless they transfer money.
Authorities have repeatedly warned that digital arrest is not a legally recognised procedure in India and that genuine law enforcement officials do not conduct arrests by demanding money over video calls.
ED Traces Money Through Around 400 Bank Accounts
The ED has alleged that the money taken from the Goa woman was transferred through a network of approximately 400 mule accounts linked to commodity, travel and foreign exchange businesses.
According to investigators, these businesses were allegedly operated through dummy directors to conceal the identities of those controlling the accounts. The funds were subsequently withdrawn and converted into foreign currency through licensed money changers, making it more difficult to trace the money and identify its ultimate beneficiaries.
The agency is examining the movement of funds across the network, which allegedly involved transactions on a much larger scale than the amount reported lost by the woman in Goa.
While more than Rs 400 crore has reportedly been lost by victims linked to the suspected network, the overall banking transactions under investigation are estimated at nearly Rs 28,000 crore. The ED has also identified cash deposits of around Rs 2,900 crore in connection with the alleged operations.
Advocate Accused Of Helping Unfreeze Bank Accounts
Upadhyay has been identified by the ED as an alleged key figure in the network. The agency suspects that he helped arrange the unfreezing of bank accounts that had been frozen following police complaints about cyber fraud.
Investigators have alleged that intermediaries known as Angadiyas, who operate within a private cash-transfer system, were used to deliver bribes to facilitate the release of the accounts.
The ED is now attempting to identify the officials who may have received the alleged bribes and establish the roles played by the intermediaries and other individuals involved.
The agency has also alleged that Upadhyay acted outside his capacity as a legal professional. According to the investigation, despite being enrolled as an advocate, he had neither appeared before the relevant authorities nor filed a Vakalatnama to represent the accused individuals or companies concerned.
These allegations are part of the ongoing investigation and have not been established as proven facts.
Over 300 Complaints Registered Across 20 States And UTs
The investigation has pointed to the possible nationwide reach of the suspected cyber fraud network.
According to the ED, more than 300 victim complaints have been linked to bank accounts allegedly associated with the network. These complaints have led to the registration of over 160 FIRs across 20 states and Union Territories.
The agency is investigating the financial trail to determine how the money was transferred, who benefited from the transactions and whether additional individuals or businesses were involved in laundering the proceeds of the alleged crimes.
Seven people have been arrested in connection with the case so far.
How To Stay Safe From Digital Arrest Scams
Authorities have urged people to remain cautious when receiving calls from individuals claiming to represent the police, the ED, the Central Bureau of Investigation (CBI) or other government agencies.
People should not transfer money in response to threats of arrest or claims that their bank accounts are linked to criminal investigations. They should independently verify the identity of callers and report suspicious communications to the authorities.