New Delhi, January 2, 2026

The Enforcement Directorate (ED) on Friday announced the second arrest in connection with a high-profile money laundering investigation linked to a “digital arrest” targeting Ludhiana-based industrialist S P Oswal.

The individual arrested, Arpit Rathore, was taken into custody on December 31 in Kanpur after searches were conducted at his premises. According to the ED, Rathore played a significant role not only in Oswal’s digital arrest case but also in multiple cybercrime and fraud operations targeting unsuspecting victims. During the searches, the agency reportedly seized digital devices and ₹14 lakh in cash. Rathore has been sent to ED custody until January 5 under the special provisions of the Prevention of Money Laundering Act (PMLA) in Jalandhar.

This follows the agency’s first arrest in the case on December 23, when Rumi Kalita from Assam was taken into custody. Kalita remains in ED custody as the investigation continues.

The money laundering probe stems from a FIR registered by Ludhiana Police after S P Oswal, chairman of the Vardhman Group, was allegedly defrauded in a digital arrest scam in August 2023. In this instance, fraudsters impersonated officers from the Central Bureau of Investigation (CBI) and coerced Oswal into paying ₹7 crore under threats of arrest.

According to the ED, Rathore collaborated with foreign associates to facilitate these crimes. He reportedly provided “mule accounts” to move illicit proceeds internationally and coordinated the transfer of funds from victims in India to accounts abroad. In return, Rathore received his share of the criminal proceeds in USDT cryptocurrency and Indian rupees.

The ED also claimed that the same group orchestrated other digital frauds, defrauding around ₹1.73 crore from additional victims. These crimes fall under the broader category of “digital arrest” scams, where criminals impersonate police or investigating agency officers, extorting money from victims by threatening arrest or legal action.

The government has repeatedly warned the public that digital arrests are illegal in India. Victims of such scams are urged to immediately contact local police authorities or reach out to the National Cyber Crime Helpline at 1930 for assistance.

Rathore’s arrest marks a significant development in the investigation, with authorities emphasizing that the case involves cross-border coordination with foreign nationals and complex money laundering operations. The ED has indicated that further action is likely as the probe continues, particularly targeting individuals who facilitated the transfer of funds to international accounts.

The case has drawn national attention due to the profile of the victim, S P Oswal, and the sophisticated nature of digital arrest scams, which have been on the rise in India. Cybercrime experts note that perpetrators often use technology to impersonate law enforcement officials convincingly, creating an atmosphere of fear and urgency that compels victims to transfer funds.

The ED’s statement also highlighted the agency’s ongoing efforts to identify additional accomplices and freeze illicit assets, aiming to dismantle the broader network involved in cyber extortion and money laundering. Authorities have reiterated that digital arrest is a criminal offense and that public awareness is crucial to prevent further scams.

With the arrest of Rathore, the ED continues to pursue a comprehensive investigation into the syndicate, examining both domestic and foreign connections, financial trails, and digital evidence. The agency emphasized that this operation is part of a larger effort to safeguard individuals and corporate entities from emerging forms of cybercrime in India.