Major Cyber Fraud Ring Busted in Gujarat: Rs 104-Crore Scheme Involving Digital Arrests and Cryptocurrency Laundering

In Gujarat, four individuals have been apprehended in connection with a cyber fraud operation amounting to Rs 104 crore. The Enforcement Directorate's Surat Sub-Zonal Office filed a prosecution complaint on Wednesday under the Prevention of Money Laundering Act, 2002, before Ahmedabad's special court.

The arrested individuals have been identified as Makbul Abdul Rehman, Kaashif Makbul, Mahesh Mafatlal Desai, and Om Rajendra Pandya, who were taken into custody by the ED in October. The primary conspirator, Bassam Makbul, remains at large, having reportedly fled to an Arab country, according to the investigating agency.

The perpetrators allegedly conducted widespread fraudulent activities targeting victims across India through various cyber schemes and subsequently laundered the illicit funds.

According to the ED's investigation, the main accused - Makbul and his sons Kaashif and Bassam Makbul - orchestrated multiple sophisticated scams with their associates. Their fraudulent operations included fake forex and stock market investment advisory services, impersonation of officials from law enforcement agencies such as the ED, Telecom Regulatory Authority of India (TRAI), Central Bureau of Investigation (CBI), and even the Supreme Court.

They also conducted "Digital Arrest" frauds via video calls and extortion through forged legal notices and penalties.

The illegally acquired funds were collected in bank accounts created using Know Your Customer (KYC) documents obtained from relatives and hired individuals. These accounts were operated using pre-activated SIM cards. The criminal proceeds underwent multiple transaction layers, were withdrawn as cash, and transferred through hawala networks before conversion into cryptocurrencies like United States Dollar Tether (USDT) to evade regulatory oversight.

Investigators discovered that substantial amounts were spent online to maintain an extravagant lifestyle. The ED provisionally attached three immovable properties valued at Rs 2.13 crore in November.

Mitesh Gokulbhai Thakkar, the fifth accused named in the complaint, faces prosecution for his involvement in financial layering and fund movement activities.

The investigation into this case continues to progress.