In a significant development in the ongoing crackdown on cybercrime, the Enforcement Directorate (ED) has intensified its investigation into the "digital arrest" scam that defrauded Ludhiana-based industrialist S.P. Oswal, Chairman and Managing Director of the Oswal Group, of ₹7 crore. The ED conducted searches at 11 locations across multiple states, including Punjab, Haryana, Rajasthan, Gujarat, and Assam, on December 22, 2025.

The ED's Jalandhar Zonal Office is leading the probe under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The investigation was initiated following an FIR registered by the Cyber Crime Police Station in Ludhiana, under relevant sections of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

The modus operandi of the fraudsters involved impersonating officers from the Central Bureau of Investigation (CBI). They used fabricated official and judicial documents to create a false sense of authority and urgency, leading to the digital "arrest" of Oswal. Under duress, Oswal was coerced into transferring ₹7 crore into various bank accounts.

The ED has successfully traced and recovered ₹5.24 crore, which has been transferred back to Oswal. Efforts are underway to recover the remaining defrauded amount.

During the recent search operations, the ED seized various incriminating documents and digital devices that are expected to provide crucial leads in the investigation. On December 23, 2025, the ED arrested Rumi Kalita, and she was produced before the Special PMLA Court in Jalandhar, which granted ED custody of the accused until January 2, 2026.

This is not the first action taken by the ED in this case. Earlier, on January 31, 2025, the ED conducted searches that resulted in the recovery and seizure of incriminating documents.

The "digital arrest" scam has become a growing concern, with numerous incidents reported across India. Scammers typically target vulnerable individuals, threatening them with false allegations and the prospect of a "digital arrest" to extort money.

In a similar case in Chennai, the ED arrested two masterminds involved in a digital arrest scam where a senior citizen was defrauded of ₹33 lakh. The investigation revealed a complex network of mule accounts used to route the fraudulent funds, which were then converted into cryptocurrency and transferred overseas.

The ED's investigation has also uncovered major lapses by fintech companies that failed to comply with Know Your Customer (KYC) norms, allowing for the deposit of cash from bogus entities and the routing of funds to individual accounts for cryptocurrency acquisition.

The arrest and searches highlight the ED's commitment to tackling the rising menace of cybercrime and money laundering in India. The agency is actively pursuing leads and collaborating with other law enforcement agencies to dismantle these sophisticated networks and bring the perpetrators to justice. The investigation is ongoing, and further updates are expected as the ED continues to unravel the complexities of this case.