The ED, Panaji Zonal Office, has arrested two individuals under the PMLA, 2002, in connection with a “digital arrest” case in Goa. Both have been remanded to ED custody until August 29, 2026. The network involved in defrauding a victim of ₹2.60 crore transacted funds exceeding ₹27,850 crore through bank accounts, deposited approximately ₹2,904 crore in cash, and converted proceeds from cyber fraud into foreign currency. Its accounts are linked to 163 FIRs across 20 states and Union Territories. Investigation is underway.
DigitalArrest — No agency arrests you via video call. Report on 1930.
ED arrests two accused in Goa “digital arrest” case; accused remanded to ED custody; network converts cyber fraud proceeds into cash and then foreign currency through licensed money changers; evidence of its cyber accounts being linked to 163 FIRs in 20 states and union territories
The Enforcement Directorate (ED), Panaji Zonal Office arrested Faheem Moeen Hussain Sayed and Naeem Moeen Sayed on 23.08.2026 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. Both were produced before the Hon’ble Special Court (PMLA) at Goa on 24.08.2026 and have been remanded to ED custody for five days till 29.08.2026.
The investigation relates to an FIR registered by the Cyber Crime Police Station, North Goa, in which a resident of Goa was subjected to a fraud called “digital arrest.” She was duped into believing that she was under investigation, subjected to constant surveillance via video calls, and was thus coerced into transferring ₹2,60,33,634/- to so-called “secret surveillance accounts” between 21.05.2025 and 02.06.2025.
The investigation revealed that the victim’s money did not remain confined to those who defrauded him. It reached an organized network whose sole purpose was to convert the proceeds of cyber fraud, received as normal banking credit, first into cash and then into foreign currency through companies holding fully-fledged money changers’ licenses from the Reserve Bank of India.
The victim’s funds were transferred within hours through a first layer of dormant and newly opened bank accounts and then divided among more than 400 beneficiary accounts through transfers, cash withdrawals, self-checks, and payment gateways. The money trail then led to an interconnected group of entities involved in commodities, trading, travel, and foreign exchange.
Together, these entities conducted banking transactions totaling over ₹27,850 crore and deposited approximately ₹2,904 crore in cash, of which ₹584.70 crore was deposited in 61,448 separate transactions through “Bulk Note Acceptance Machines” located at a large number of locations. This scale and manner of cash management is completely inconsistent with normal business activities.
The investigation established that the bank accounts of these entities were linked to 330 victim complaints and 163 First Information Reports (FIRs) across 20 states and union territories, involving alleged losses totaling ₹417.49 crore. In 101 of these complaints, funds belonging to the same victim were transferred to two or more entities within the same group during the same fraud, establishing that these accounts were operated as a common pool, not as separate businesses.
The investigation further revealed that the companies through which the proceeds of crime were routed were registered in the names of persons of very ordinary financial status – including employees, drivers and single-room dwellers – and were shown as directors in the records, while the bank accounts and affairs of these companies were controlled by other persons.
Searches were conducted under Section 17 of the PMLA on July 17, 2026, at 20 premises in Mumbai and Goa, and on August 21, 2026, at additional premises. Cash amounting to ₹3.25 crore was seized, and syndicate accounts with balances exceeding ₹30 crore were frozen. Digital devices, ledgers, records, and statutory registers were also seized, which are being examined.
The Directorate takes this opportunity to caution the general public once again. No investigating agency or law enforcement agency in India makes “digital arrests,” conducts investigations through video calls, or asks any individual to transfer money to an account for “verification” or “supervision.” Any such demands are fraudulent. Upon receiving such calls, citizens should disconnect the call and immediately report the matter to the National Cyber Crime Helpline at 1930 or visit www.cybercrime.gov.in.
Further investigation is underway in the matter.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.