Enforcement Directorate Arrests Two in Alleged Rs 400 Crore Online Fraud And Cyber Fraud and Money Laundering Case
The Enforcement Directorate has arrested two men in connection with an alleged pan-India cyber fraud and money laundering network involving more than Rs 400 crore. Roshan Fiaz and Ammar were arrested on 30 October 2026 by the Chennai Zonal Office-II of the agency under the Prevention of Money Laundering Act, 2002. They were produced before the Special PMLA Court in Chennai, which remanded them to 14 days of judicial custody.
According to the Enforcement Directorate, the investigation relates to the laundering of money generated through online frauds. The agency has estimated the proceeds of crime linked to the network at more than Rs 400 crore. More than 600 cybercrime complaints have been identified as connected to the same network. The case involves the use of mule bank accounts and cryptocurrency transactions, specifically involving USDT, also known as Tether.
The investigation began on the basis of two FIRs. One was registered by the State Cyber Crime Command Centre of the Tamil Nadu Police. The other was registered by the Cyber Crime Police Station in Cyberabad, Telangana. During the probe, the Enforcement Directorate identified ten additional FIRs registered in Telangana, Karnataka and West Bengal that were linked to the same network. In total, the agency has connected at least twelve FIRs to the alleged operation.
The Enforcement Directorate has described a multi-stage process through which the money was allegedly moved. Victims were approached through telephone calls and social media platforms. They were induced to transfer money on the basis of different fraudulent propositions. These included fake investment schemes, fake job offers and share-market investment schemes. Other online fraud methods were also used.
Once the money was transferred by victims, it was received in mule bank accounts. These are accounts used to receive, hold or transfer money on behalf of others. The funds were then moved across multiple accounts in smaller amounts. Portions of the money were withdrawn in cash. Other portions were converted into cryptocurrency, specifically USDT, through cryptocurrency wallets.
The agency has identified Roshan Fiaz as a key person in the alleged network. According to the Enforcement Directorate, he operated an extensive chain of mule bank accounts. These accounts were held in his own name, in the name of his wife, and in the names of several proprietorship entities and other entities allegedly controlled by him. The agency has stated that debit and credit transactions exceeding Rs 300 crore were identified in 31 such accounts.
Ammar has been identified as another important participant. The Enforcement Directorate has alleged that he supplied mule bank accounts belonging to various individuals and entities. Along with the accounts, he allegedly provided account kits, internet banking credentials, SIM cards, mobile phones and email IDs. These were supplied for the purpose of receiving Indian rupees from cryptocurrency buyers. The agency has stated that the two acted in connivance with their associates.
Before the arrests, the Enforcement Directorate conducted searches under Section 17 of the Prevention of Money Laundering Act at locations linked to Roshan Fiaz, Ammar and their associated entities. During these searches, the agency seized Rs 14.50 lakh in cash and cryptocurrency worth Rs 3.26 crore. Approximately Rs 88.28 lakh lying in multiple bank accounts was frozen.
The case has been reported by several news organisations. Reports published around 5 and 6 November 2026 in The Times of India and Hindustan Times have provided additional details consistent with the Enforcement Directorate’s account. One report identified Roshan Fiaz as being from Chennai and Ammar as being from Pudukkottai. The reports have also referred to the connection with the Cyberabad cybercrime case and the identification of more than 600 related complaints.
The Prevention of Money Laundering Act, 2002, is the law under which the Enforcement Directorate is investigating the matter. The Act deals with processes and activities connected with proceeds of crime, including their concealment, possession, acquisition and use. The agency has invoked its powers of search and seizure under Section 17 and its power of arrest under Section 19 of the Act. The two accused are currently in judicial custody as ordered by the Special PMLA Court in Chennai.
The Enforcement Directorate’s press release, issued on 5 November 2026 by the Chennai Zonal Office-II, sets out the main facts of the investigation so far. It states that the suspected laundering mechanism involved collecting money from victims through online frauds, routing it through multiple bank accounts, splitting transactions into smaller amounts, withdrawing portions in cash and converting other portions into cryptocurrency. The agency has specifically pointed to the roles of Roshan Fiaz in operating the chain of mule accounts and of Ammar in supplying the accounts and related banking and communication material.
The investigation covers activity across several states. The original FIRs were registered in Tamil Nadu and Telangana. Additional FIRs were later identified in Telangana, Karnataka and West Bengal. The more than 600 cybercrime complaints linked to the network indicate the geographical spread of the alleged frauds. Victims in different parts of the country are reported to have approached various police stations and cybercrime reporting authorities.
The financial figures reported by the Enforcement Directorate relate to different aspects of the case. The agency has estimated the overall proceeds of crime associated with the network at more than Rs 400 crore. In the 31 bank accounts linked to Roshan Fiaz, debit and credit transactions exceeding Rs 300 crore were identified. During searches, cash of Rs 14.50 lakh and cryptocurrency valued at Rs 3.26 crore were seized, while bank balances of approximately Rs 88.28 lakh were frozen.
These are the details made available by the Enforcement Directorate in its official press release and reflected in contemporary news reports. The investigation remains ongoing. Roshan Fiaz and Ammar continue to be in judicial custody as per the order of the Special PMLA Court in Chennai. Further proceedings will take place before the competent court under the provisions of the Prevention of Money Laundering Act.
