The Enforcement Directorate (ED) has intensified its investigation into a high-profile digital arrest scam, conducting searches at 11 locations across five states in connection with the alleged misappropriation of funds involving Ludhiana-based industrialist S P Oswal. Officials confirmed on Thursday that the raids were part of an ongoing anti-money laundering probe in which Oswal reportedly lost over ₹7 crore.

The searches, carried out on Monday, spanned locations in Punjab, Haryana, Rajasthan, Gujarat, and Assam. These actions were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, which empowers authorities to investigate and seize assets linked to financial crimes. An ED spokesperson stated that the searches resulted in the recovery of “various incriminating documents and digital devices,” which are expected to aid further investigation and prosecution.

This probe follows the arrest of Rumi Kalita from Assam on Tuesday, who allegedly played a crucial role in the digital arrest scam by offering her mule account for the transfer of funds. According to ED officials, Kalita was reportedly part of a wider network that diverted the defrauded amounts into multiple mule accounts. She was to receive a percentage of the misappropriated money as her share. The agency highlighted that evidence recovered during the searches indicates that Kalita was “deeply involved in the diversion and layering of the proceeds of crime.” Following her arrest, she has been placed in ED custody until January 2, 2026.

The investigation by the Enforcement Directorate was initiated based on ten FIRs registered with various police authorities relating to cybercrime and digital arrest scams associated with the same criminal group. The ED probe revealed that during the digital arrest of S P Oswal, fraudsters impersonating officers from the Central Bureau of Investigation (CBI) leveraged forged official and judicial documents to coerce him into transferring ₹7 crore into multiple accounts. Of this amount, approximately ₹5.24 crore was recovered and returned to Oswal’s accounts, while the remainder was moved into various mule accounts maintained in the names of different individuals, including labourers and delivery personnel. Some of these funds were immediately withdrawn in cash or further diverted through layered transactions.

The case underscores the growing sophistication of cybercriminal networks that exploit digital platforms and impersonation tactics to defraud high-profile individuals and businesses. In this instance, the fraudsters’ use of forged documents and official-looking communications demonstrates a methodical approach to executing large-scale financial scams. Authorities have emphasized that tracing the flow of funds through mule accounts is critical for recovering misappropriated money and dismantling the networks behind such crimes.

This round of searches follows earlier actions taken by the ED on January 31, 2025, which also led to the recovery of incriminating documents and evidence. Officials noted that the newly recovered digital devices and records are expected to provide further insights into the methods employed by the criminal group, their networks, and the diversion of funds across multiple states and accounts.

Cybercrime experts observing the case point out that digital arrest scams have become increasingly prevalent in India, targeting businessmen, professionals, and even senior citizens through phone calls, emails, or fraudulent legal notices. In many cases, fraudsters impersonate law enforcement officers, government officials, or judicial authorities to instill fear and coerce victims into transferring money or revealing sensitive banking information. The S P Oswal case highlights the importance of vigilance and legal recourse when confronted with suspicious communications that appear to carry official authority.

The Enforcement Directorate has confirmed that its investigation remains ongoing and that further arrests or actions may follow as more evidence is analyzed. Officials have stressed the importance of inter-state cooperation, noting that the group’s operations span multiple jurisdictions, which necessitates coordinated efforts among state and central agencies to trace and recover the proceeds of crime.

For Oswal, a prominent industrialist based in Ludhiana, the scam has not only resulted in financial losses but has also raised concerns about the vulnerability of high-net-worth individuals to increasingly sophisticated digital fraud schemes. The case serves as a cautionary tale for business leaders and professionals to adopt enhanced cybersecurity measures, verify official communications, and report suspicious activities promptly to the authorities.

The Enforcement Directorate’s actions in this case are part of a broader strategy to combat money laundering and financial crimes in India. By investigating the flow of illicit funds and targeting the networks that facilitate such scams, the agency aims to deter criminal activity, recover misappropriated money, and uphold the integrity of the financial system. The use of PMLA provisions allows the ED to freeze assets, conduct searches, and take custodial action against individuals involved in laundering proceeds from fraudulent schemes, thereby providing a legal framework to combat organized financial crimes effectively.

As the investigation progresses, authorities are expected to further scrutinize the role of other individuals and entities involved in the scam. The case also draws attention to the critical role of financial institutions and law enforcement agencies in identifying suspicious transactions, monitoring unusual fund transfers, and cooperating in inter-state investigations. By tracing the movement of money through multiple accounts and layers, the ED seeks to ensure that criminals cannot evade accountability by dispersing stolen funds across a wide network of accounts and locations.

In conclusion, the ongoing ED investigation into the digital arrest scam involving S P Oswal highlights both the challenges posed by modern cyber frauds and the efforts by law enforcement agencies to combat complex financial crimes. The searches across Punjab, Haryana, Rajasthan, Gujarat, and Assam, along with the arrest of key individuals like Rumi Kalita, demonstrate the agency’s determination to uncover the entire network behind the scam and recover the misappropriated funds. As India faces increasing instances of digitally enabled fraud, cases such as this underscore the need for heightened awareness, proactive legal measures, and robust enforcement mechanisms to protect individuals and businesses from sophisticated financial crimes.