Delhi cybercriminals embezzled ₹4,900 crore in cybercrime funds overseas: ED

Cyber News Jan 25, 2025 0 18 Add to Reading List

"Cyber criminals" from Delhi stole about ₹4,900 crore overseas by "misusing" special economic zone facilities, according to the Enforcement Directorate on Thursday.

As part of this probe, the federal agency detained Ashish Kakkar, also known as Pablo, a resident of Greater Kailash, and Punit Kumar, also known as Puneet Maheshwari, also known as John, a resident of the Moti Nagar neighborhood, last year.

A temporary order was granted on January 17 to seize nine residential apartments in Delhi and a piece of agricultural property in Rewari, Haryana, in the names of the two individuals and their families, according to a statement released by the ED.

According to the ED, it became involved in the case after receiving police FIRs filed nationwide against individuals engaged in crimes such as online gaming fraud, multi-level marketing schemes, and investment scams, which include frauds involving part-time jobs, online shopping, and fraudulent loan disbursements through mobile apps.

According to the agency, these "scams" were carried out by organizations based in island nations such as Curacao, Malta, and Cyprus using a variety of "fraud" websites and apps, including upbitro.com and a betting website called www.taj777.com. The two defendants were accused of "layering" the proceeds of crime through more than 200 companies that were registered in their names. Additionally, many businesses were registered under the names of their workers, such as sweepers, drivers, and office boys. According to the report, their signatures were "misused" to run the businesses and associated bank accounts. The ED said that the two individuals "misused" special economic zone capabilities by getting GST registrations and associated export-import permits in order to transfer the proceeds of cybercrime outside of India.

Through Special Economic Zones (SEZs) like Mundra and Kandla, the two bought significantly "over-valued" items like rose oil and solar panel machinery from China, Hong Kong, Dubai, and other countries. They also made "huge illegal outward foreign remittances" overseas to offset their imports. The identical products were then reexported, but no payment was received in exchange for the export, according to the ED's allegations. "Ashish Kakkar and Punit Kumar ultimately siphoned off ₹4,978 crore abroad, laundering the money obtained from cyber fraud using these circular transactions," the ED revealed. "The same goods were imported and then exported multiple times to siphon off the money abroad."