Probe Agency ED Arrests 2 Chartered Accountants In Rs 641 Crore Cyber Fraud

The Directorate of Enforcement (ED) has arrested two chartered accountants - Ashok Kumar Sharma and Bhaskar Yadav - in connection with a large cyber fraud and money laundering case involving proceeds of crime worth around Rs 641 crore, officials said on Friday.

The arrests were made on February 28, 2026, under provisions of the Prevention of Money Laundering Act (PMLA), 2002, following their surrender before a court after multiple attempts to secure anticipatory bail were rejected.

How The Fraud Operated

According to the ED investigation, the case involves a large-scale cyber-enabled fraud network that targeted innocent citizens across India. Victims were allegedly lured into transferring money through various online scams such as fake investment opportunities, part-time job schemes, QR code-based frauds, phishing operations and other digital inducements.

The fraudulently obtained money was first deposited into mule bank accounts operated by members of certain Telegram groups. The funds were then layered through a network of shell and dummy companies across India to hide the source of the money.

Money Sent Abroad Through Fintech and Crypto

Investigators found that the laundered funds were transferred using Indian bank-issued Visa and Mastercard debit cards to a UAE-based fintech platform called "PYYPL".

From these wallets, the money was either withdrawn overseas, particularly in Dubai, through ATM and point-of-sale transactions or converted into virtual digital assets (cryptocurrency) through the Binance exchange and then routed through multiple crypto wallets to conceal the trail of funds.

Syndicate Run By Professionals

The ED said the laundering operation was run by a structured syndicate comprising educated professionals, including chartered accountants. Ashok Kumar Sharma, Bhaskar Yadav, Ajay and Vipin Yadav.

The group allegedly incorporated and controlled more than 20 entities operating from common addresses in Bijwasan, Delhi. These companies had overlapping partners and authorised signatories and shared common KYC documents, mobile numbers and email IDs.

Investigators said these entities were used as financial conduits to layer illegal funds and transfer them outside India.

Search Operation And Absconding

ED officials had conducted searches at several locations, including the residences of Sharma and Yadav, on November 28, 2024.

During the search, Ashok Kumar Sharma allegedly fled the premises and assaulted ED officials while trying to evade action, leading to the registration of an FIR at Kapashera Police Station against him and his brother Subhash Sharma.

Bhaskar Yadav also reportedly absconded after learning that ED officials had reached his residence to conduct searches.

During the raid at Sharma's residence, officials seized incriminating documents, including ATM cards and chequebooks linked to shell entities.

Bail Pleas Rejected

Since the searches in November 2024, both accused had been absconding and had sought anticipatory bail to avoid arrest. However, the Special PMLA Court rejected their bail pleas on January 15, 2025. The Delhi High Court also dismissed their petitions on February 2, 2026, citing the seriousness of the allegations and provisions of Section 45 of the PMLA.

Subsequently, Bhaskar Yadav approached the Supreme Court, but his special leave petition was dismissed on February 18, 2026, with directions to surrender before the concerned court.

Following their surrender, both accused were arrested under Section 19 of the PMLA.

Progress In The Case

So far, the ED has arrested 10 individuals in the case. The agency has also issued two Provisional Attachment Orders, attaching movable and immovable assets worth about Rs 8.67 crore.

Additionally, two prosecution complaints have been filed before the Special PMLA Court, which has already taken cognisance of them.

The ED said further investigation into the case is underway.