ED Nabs Second Suspect in Ludhiana Industrialist's Digital Extortion Case
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The Enforcement Directorate (ED) has made a second arrest in connection with a high-profile money laundering case linked to the digital extortion of Ludhiana-based industrialist S P Oswal. Arpit Rathore, a key player in the scam, was taken into custody on December 31 from Kanpur after a search operation at his premises. The ED seized digital devices and ₹14 lakh in cash during the action. Oswal, the chairman of the Vardhman Group, was targeted by fraudsters in August 2023 who impersonated CBI officers, extorting ₹7 crore from him. The ED claims Rathore worked with foreign associates to carry out the crime, providing mule accounts and facilitating the transfer of illegal proceeds abroad. Rathore allegedly received his share of the 'criminal proceeds' in USDT cryptocurrency and Indian rupees. The same group is believed to have defrauded others of ₹1.73 crore through digital arrest and cyber scams. Digital arrest is a form of cybercrime where scammers impersonate police or investigating agency officers, threatening victims with arrest or prosecution unless they pay. The government has warned that digital arrests are not legal in India and urged victims to contact the national cybercrime helpline number 1930 and seek help from local police. The ED had made its first arrest in the case on December 23, taking into custody Rumi Kalita from Assam. She is currently in ED custody. A special PMLA court in Jalandhar has sent Rathore to ED custody till January 5.
