New Delhi (Gurpreet Singh): The Enforcement Directorate (ED) on Tuesday said it has attached ₹1.76 crore deposited in a mule bank account as part of its money laundering investigation into the digital arrest fraud involving Ludhiana-based industrialist SP Oswal.
According to an official statement, the funds were traced to a bank account operated under the name Mrityunjya Multitrade, identified as a “mule” entity used to receive and route proceeds of crime generated from cybercrimes, including digital arrest scams.
Oswal, chairman of the Vardhman Group, was allegedly placed under “digital arrest” in August 2023 by fraudsters impersonating officers of the Central Bureau of Investigation (CBI). The accused are said to have extorted ₹7 crore from him under threats of arrest and prosecution.
The case was initially registered by Punjab Police in Ludhiana before the ED took cognisance under money laundering provisions. Investigators found that multiple mule bank accounts were used to launder proceeds of the cybercrime. These accounts were reportedly opened by exploiting economically vulnerable individuals, lured with false promises of loans or employment opportunities.
Mule accounts are commonly used in financial crimes to funnel illicit funds. The actual operator of the account differs from its legal holder, and such accounts are often created using fake or rented Know Your Customer (KYC) credentials in exchange for commissions. The ED arrested two accused in connection with the case in 2025.
“Digital arrest” refers to a cyber fraud tactic in which criminals impersonate police or investigative agency officials and extort money by threatening victims with arrest or legal action. The government has clarified that digital arrests have no legal validity in India. Citizens encountering such scams are advised to immediately contact local police and dial the national cybercrime helpline at 1930.
The investigation remains ongoing.
