The agency alleged that the proceeds of the cyber fraud amounted to approximately Rs. 641 crore.
NEW DELHI (India CSR): The Directorate of Enforcement (ED), Headquarters Unit, New Delhi, has arrested Chartered Accountants Ashok Kumar Sharma and Bhaskar Yadav under the Prevention of Money Laundering Act (PMLA), 2002, in an investigation into an alleged cyber-enabled fraud and money-laundering network. The ED said the two were arrested on February 28, 2026, after they surrendered before the concerned court.
Cyber Fraud Investigation
According to the ED, its investigation uncovered an alleged large-scale cyber fraud in which citizens across India were induced to transfer funds on the pretext of investment opportunities, part-time job schemes, QR code-based scams, phishing operations and other fraudulent digital inducements. The agency alleged that the proceeds of the cyber fraud amounted to approximately Rs. 641 crore.
Mule Account Network
The ED said the alleged fraud proceeds were initially credited into mule accounts managed and operated by members of certain Telegram groups. The agency alleged that these funds were subsequently layered through a network of dummy and shell entities across India, allegedly to fragment transactions and obscure the original source of funds.
Overseas Fund Transfers
According to the ED, the laundered amounts were transferred using Indian bank-issued Visa and Mastercard debit cards to “PYYPL”, a UAE-based fintech platform that provides internationally usable prepaid cards. The ED said PYYPL is regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority.
The agency alleged that funds from PYYPL wallets were withdrawn overseas, particularly in Dubai through ATM and point-of-sale transactions, or converted into virtual digital assets through the Binance crypto exchange. The ED further alleged that the amounts were routed through a complex chain of custodial and non-custodial wallets to conceal the money trail and project the alleged proceeds of crime as untainted property.
Shell Entity Network
The ED alleged that a structured syndicate comprising professionals, including Chartered Accountants Ashok Kumar Sharma, Bhaskar Yadav, Ajay and Vipin Yadav, was operating a coordinated money-laundering arrangement. According to the agency, the syndicate incorporated and controlled more than 20 entities operating from common addresses in Bijwasan, Delhi.
The ED said these entities had overlapping partners and authorised signatories, along with convergence in KYC documentation, mobile numbers and email IDs. The agency alleged that the entities functioned as conduits for systematic layering of illicit funds and their subsequent transfer outside India.
Searches And Seizures
The ED conducted searches at multiple locations, including the residences of Ashok Kumar Sharma and Bhaskar Yadav, on November 28, 2024. It said incriminating documents, including ATM cards and cheque books linked to shell entities, were found and seized from the residence of Ashok Kumar Sharma.
The agency alleged that Ashok Kumar Sharma fled from the premises during the search. It further alleged that, while evading action, he assaulted ED officials. An FIR was registered at Kapashera Police Station, New Delhi, against Ashok Kumar Sharma and his brother, Subhash Sharma, in connection with the alleged incident.
Accused Absconded Earlier
The ED alleged that Bhaskar Yadav also absconded from his residence after learning that ED officials had reached the premises to conduct searches. The agency said both Ashok Kumar Sharma and Bhaskar Yadav had been absconding since November 28, 2024.
According to the release, the accused sought anticipatory bail in an effort to avoid the PMLA investigation. Their applications were dismissed by the Special Court on January 15, 2025, and by the Delhi High Court on February 2, 2026, the ED said.
Supreme Court Order
The ED said Bhaskar Yadav subsequently filed a Special Leave Petition before the Supreme Court. According to the agency, the petition was dismissed on February 18, 2026, and he was directed to surrender before the concerned court.
Following the surrender of Ashok Kumar Sharma and Bhaskar Yadav, the ED arrested them under Section 19 of the PMLA, 2002. The agency said it placed evidence collected during the investigation before courts at different judicial stages.
Ten Arrests So Far
The ED said that a total of 10 individuals, including Ashok Kumar Sharma and Bhaskar Yadav, have been arrested in the case so far. The agency has issued two Provisional Attachment Orders, attaching movable and immovable properties valued at approximately ₹8.67 crore.
Complaints Already Filed
According to the ED, two prosecution complaints have been filed before the Special PMLA Court in the case. The agency said the court has taken cognisance of both complaints. Further investigation is underway.
