ED officials reported that the arrested individuals received substantial remuneration-Rs 2 crore and Rs 70 lakh, respectively-for their involvement in creating these illicit accounts
scam, online fraud, fraud
Harsh Kumar, New Delhi,
Feb 21 2025 : In its ongoing crackdown against Chinese loan apps, the Enforcement Directorate (ED) on Friday arrested two suspects from Kerala and claimed that they arranged about 500 mule bank accounts and used them to launder about ₹719 crore of victims’ money.Sayid Muhammad and Varghese TG, who have been booked under stringent Prevention of Money Laundering Act (PMLA), 2002, have also been accused of opening 26 cryptocurrency accounts on WazirX, which were used to send ₹115.67 crore off shore, the ED said.
The arrests stem from multiple FIRs filed by victims in Kerala and Haryana.
The loan app operators used to extort money from victims by adopting various methods such as seeking advance EMIs and blackmailing them by using their private data stolen from mobile phones through the loan apps.
ED officials said that the arrested individuals received substantial remuneration, about ₹2 crore and ₹70 lakh, respectively, for their involvement in creating these illicit accounts. The investigation also uncovered that part of the proceeds of crime (POC) was funnelled to Singapore through normal banking channels and via Nium India Pvt. Ltd., through fictitious software imports.
In February 2024, the ED conducted extensive searches at over 10 locations across Mumbai, Chennai, and Kochi, seizing multiple electronic devices containing incriminating evidence. During these operations, funds totalling ₹123.58 crore in various accounts linked to the scheme were frozen.
The investigation will continue as authorities aim to dismantle the extensive international fraud network.
In a separate case, ED last month had apprehended four individuals from Tamil Nadu linked to fraudulent Chinese loan applications, revealing that shell companies associated with them transferred over ₹170 crore to Chinese operators via Singapore in 2023.
The case, registered in February 2024, followed multiple FIRs filed at various police stations in Kerala against these bogus loan apps. Among the arrested is Raphael James Rozario, a resident of Vypeen, who allegedly facilitated the creation of mule bank accounts for individuals in financial distress in exchange for commissions.
According to ED officials, various Chinese loan apps are being promoted on social media, offering “easy loans”. Users who install these apps unwittingly give access to sensitive information on their mobile devices. The investigation also uncovered numerous fraudulent gambling and investment applications linked to mule accounts set up in India with the assistance of Rozario.
Modus Operandi
* The loan app operators used to extort money from victims through various methods such as seeking advance EMIs
* Victims were blackmailed with private data hacked during app installation
* The suspects facilitated the scam by arranging approximately 500 mule bank accounts.
* 26 cryptocurrency accounts were set up on WazirX to facilitate cross-border remittances. It amounted to ₹115.67
