Breaking: ED attaches Rs 1.76 crore in S. P Oswal's ‘Digital Arrest’ Scam; Cyber fraud racket busted
Babushahi Bureau
Jalandhar (Punjab), February 20, 2026: The Directorate of Enforcement (ED) has provisionally attached bank balances worth ₹1.76 crore in connection with the high-profile “digital arrest” fraud involving industrialist S. P. Oswal, Chairman of the Vardhman Group.
The attachment, carried out on February 14, 2026, forms part of an ongoing money laundering probe into the elaborate cybercrime network.
The case pertains to an incident in August 2024, when fraudsters allegedly impersonating officials of the CBI and even the Supreme Court placed the 82-year-old industrialist under what they termed a “digital arrest” for two days.
The accused reportedly staged a fake appearance of the Chief Justice of India via Skype and falsely linked Oswal to a money laundering case involving Jet Airways founder Naresh Goyal.
Through intimidation and continuous video surveillance, the fraudsters allegedly coerced Oswal into transferring ₹7 crore into a so-called “Secret Supervision Account.”
The ED’s Zonal Office in Jalandhar traced the attached ₹1.76 crore to the account of M/s Mrityunjya Multitrade, identified as a mule entity used to channel proceeds of multiple cyber frauds.
Two key accused — Rumi Kalita (arrested December 23, 2025) and Arpit Rathore (arrested December 31, 2025) — are currently in judicial custody. According to investigators, Rathore handled international linkages and facilitated the transfer of funds to foreign jurisdictions.
The probe further revealed that the proceeds of crime were routed through firms including M/s Frozenman Warehousing & Logistics and M/s Rigglo Ventures Pvt Ltd. A portion of the siphoned funds was converted into USDT cryptocurrency, while other amounts were allegedly transferred overseas through trade-based money laundering methods.
Investigations indicate that the syndicate’s operations extended beyond the Oswal case. At least eight other cybercrime FIRs have been linked to the same bank accounts.
The gang allegedly exploited economically vulnerable individuals by luring them with promises of easy loans or employment, using their bank accounts as mule accounts to layer and transfer illicit funds.
The ED and the Government of India have reiterated that “digital arrest” is not a recognised legal procedure. Authorities have cautioned citizens that no law enforcement agency demands money via video calls to “clear” a suspect in any investigatio