SC Backs ED Probe, Denies Bail in ₹640-Crore Digital Fraud Case

The Supreme Court has refused anticipatory bail to chartered accountant Bhaskar Yadav in a major money laundering investigation linked to a ₹640-crore cyber fraud , reinforcing the judiciary’s tough stance on complex financial crimes involving digital platforms and cross-border fund flows. A bench of Justices M.M. Sundresh and Augustine George Masih upheld the Delhi High Court order denying pre-arrest relief and directed Yadav to surrender within 10 days. The High Court had also rejected the anticipatory bail plea of co-accused Ashok Kumar Sharma, citing the sophistication and scale of the alleged laundering network.

In its detailed ruling, the Delhi High Court described the case as an “intricate mesh of laundering” and accepted the Enforcement Directorate argument that custodial interrogation is essential to trace layered financial transactions and identify the wider network. The court clarified that the matter goes beyond cryptocurrency dealings which are not illegal in India and instead involves systematic laundering of funds fraudulently extracted from unsuspecting investors, many from middle-class households.

Investigators informed the court of additional allegations that the accused assaulted investigating officers, attempted to bribe local police, and destroyed electronic evidence . These factors strengthened the need for custodial questioning to preserve evidence and uncover the complete financial trail.

The ED probe stems from two FIRs filed by the Delhi Police Economic Offences Wing (EOW) into cyber fraud schemes worth ₹640 crore. The scams allegedly involved online betting , phishing operations, and fake part-time job offers designed to lure victims with promises of quick earnings.

According to investigators, the defrauded funds were routed through more than 5,000 mule bank accounts to obscure their origin. The money was then transferred to PYYPL , a UAE-based payment platform , and in some cases converted into crypto or layered through multiple transactions. Authorities say portions of the funds were withdrawn in cash in Dubai using debit and credit cards issued by Indian banks, completing a cross-border laundering cycle.

The ED believes the operation was facilitated by a coordinated network of professionals including chartered accountants, company secretaries, and crypto traders who structured transactions to disguise illicit proceeds .

Courts observed that while personal liberty is fundamental, it cannot override the need for effective investigation in large-scale economic offences affecting financial stability and public trust. Legal experts say the ruling reflects growing concern over cyber-enabled fraud , misuse of digital payment ecosystems, and cross-border laundering channels.

The case also highlights the rising threat of cyber fraud in India, where organized networks exploit digital payment systems and international gateways to siphon money from victims. Authorities are working to trace the full money trail and strengthen safeguards against similar crimes in the future.