ED arrests 2 in Goa digital arrest case; RBI-licensed money changers allegedly used to convert fraud proceeds: Sources
The Directorate of Enforcement (ED), Panaji Zonal Office, has arrested Fahim Moin Hussain Sayed and Naim Mueen Sayyed in connection with a money-laundering case linked to a ‘digital arrest’ cyber-fraud in Goa, sources said. The two were arrested on August 23, 2026, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
Both accused were produced before the Special Court (PMLA) in Goa.
Goa digital arrest case: Victim transferred over Rs 2.6 crore
According to sources, the investigation stems from FIR No 17/2025, registered on June 9, 2025, by the Cyber Crime Police Station, North Goa.
A Goa resident was coerced through the method known as ‘digital arrest’ into transferring Rs 2,60,33,634 between May 21 and June 2, 2025. The funds were falsely described to her as being transferred to “Secret Supervision Accounts.”
Investigation has revealed that the money did not stop with the fraudsters. It entered an organised apparatus that existed to convert proceeds of cyber fraud, received as banking credits, first into cash and thereafter into foreign currency, using companies holding licences from the Reserve Bank of India (RBI) as Full Fledged Money Changers.
Cyber-fraud money routed through 400-plus accounts
The investigation revealed that the victim's funds were routed within hours through a first layer of dormant and newly opened accounts and subsequently fragmented across more than 400 beneficiary accounts.
The trail led to an interconnected network of commodity, trading, travel and forex entities. Together, these entities undertook banking transactions exceeding Rs 27,850 crore and deposited approximately Rs 2,904 crore in cash.
Of this amount, Rs 584.70 crore was deposited through 61,448 Bulk Note Acceptance Machine transactions at multiple locations.
Network linked to 330 complaints and 163 FIRs
Investigation has established that the accounts of these entities are the subject of 330 victim complaints and 163 First Information Reports (FIRs) across 20 States and Union Territories.
The complaints involve an aggregate reported loss of Rs 417.49 crore.
In 101 complaints, the investigation found that money belonging to a single victim was routed into two or more entities of the same network during the course of the same fraud.
RBI-licensed money changers used to convert proceeds
As per sources, the investigation further revealed that the companies through which the proceeds were routed were used in a process that converted the cyber-fraud proceeds, received as banking credits, first into cash and thereafter into foreign currency.
The entities involved included companies holding RBI licences as Full Fledged Money Changers, according to the investigation.
ED searches premises in Mumbai and Goa
Searches were conducted under Section 17 of the PMLA at 20 premises in Mumbai and Goa on July 17, 2026, followed by searches at further premises on August 21, 2026.
During the searches, Rs 3.25 crore in cash was seized, along with digital devices, records and statutory registers. These materials are currently under examination.
Companies incorporated in names of people of modest means
Investigation has further revealed that the companies through which the proceeds were routed were incorporated in the names of persons of very modest means.
These included employees, drivers and residents of single-room tenements, who were shown as directors. However, the investigation found that the accounts and affairs of the companies remained under the control of others.
Further investigation is in progress.
