New Delhi, March 6: The Enforcement Directorate (ED) has made significant strides in a major cyber fraud investigation. Under the Prevention of Money Laundering Act (PMLA), 2002, the ED arrested Chartered Accountant Ashok Kumar Sharma and his associate on February 28, 2026. The investigation revealed that innocent individuals across the country were deceived under various digital schemes, leading to the embezzlement of hundreds of crores of rupees.
The fraud involved enticing people through investment opportunities, part-time jobs, QR code scams, phishing, and other deceptive schemes. Approximately ₹641 crores were defrauded. The money collected from the fraud was initially deposited into mule accounts managed via Telegram groups. Subsequently, to conceal the funds, a network of dummy and shell companies was established throughout India. The laundered money was transferred to the UAE’s fintech platform ‘PYPL’ using Visa and Master debit cards from Indian banks. PYPL is regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority and issues internationally accepted prepaid cards. Funds were either withdrawn through ATMs and POS transactions in Dubai or converted into virtual digital assets on the Binance crypto exchange. This money was then presented as clean assets through a complex chain involving custodial and non-custodial wallets.
The investigation uncovered that professionals like Ashok Kumar Sharma, his associate, and others operated an organized money laundering syndicate. This syndicate managed over 20 companies from a single address in the Bijwasan area of Delhi. There was significant overlap among partners and authorized signatories of these companies. Similarities were found in KYC documents, mobile numbers, and email IDs. These companies acted as conduits for organizing and transferring illegal funds abroad.
On November 28, 2024, searches were conducted at various locations, including the residences of Ashok Kumar Sharma and his associate. During the search, Sharma allegedly attempted to flee and was accused of assaulting ED officials. Following this incident, a case was registered against him and his brother Subhash Sharma at the Kapashera police station in New Delhi. Several ATM cards and checkbooks from shell companies were seized from their home.
Since then, both accused have been on the run, continuously seeking anticipatory bail to evade investigation. However, due to the seriousness of the charges and the stringent provisions of Section 45 of the PMLA, their petitions were rejected by the Special Court on January 15, 2026, the Delhi High Court on February 2, 2026, and the Supreme Court on February 18, 2026. Ultimately, they were compelled to surrender and were arrested under Section 19 of the PMLA.
To date, the ED has arrested ten individuals in this case. During the investigation, assets worth ₹8.67 crores have been attached, and two provisional attachment orders have been issued. Two prosecution complaints have been filed in the Special PMLA Court, which has taken cognizance of the matter. The investigation is ongoing, and further revelations are expected.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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