New Delhi, February 17 The Enforcement Directorate said on Tuesday that it has attached ₹1.76 crore of funds deposited in a mule bank account as part of its money laundering investigation linked to the digital arrest of prominent Ludhiana-based industrialist S P Oswal.
The funds were held in the account of one of the "mule" entities, Mrityunjya Multitrade, and this account was used to receive and channel proceeds from various cybercrimes, including digital arrests, the ED said in a statement.
The Ludhiana police had registered a case into this fraud, which the ED took cognizance of.
Oswal, chairman of the Vardhman Group, was placed under digital arrest in August 2023 by fraudsters who impersonated officers of the Central Bureau of Investigation (CBI) and extorted ₹7 crore from him, according to the agencies.
The investigation revealed that multiple mule bank accounts were used to launder proceeds from cybercrime, and these accounts were opened by inducing "economically vulnerable" individuals with false promises of arranging loans or providing employment.
The ED arrested two accused in this case in 2025.
Mule accounts are used to channel illicit funds generated from financial crimes, and the actual owner is not the user. Such accounts are created using fake or hired KYC, where someone lends their account in exchange for a commission.
"Digital arrest" is the term used for a cybercrime instance where criminals impersonate police/investigating agency officers and extort money from victims, threatening them with arrest or prosecution.
The government has clarified that digital arrests are not legal in India, and people who encounter such a crime should immediately seek help from the local police and contact the national cybercrime helpline number 1930.