NEW DELHI, Mar 5 : The Enforcement Directorate (ED) today said it has arrested CA Ashok Kumar Sharma and Bhaskar Yadav in connection with the investigation of a cyber fraud case.
An ED official said the investigation revealed a large-scale cyber-enabled fraud in which innocent 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 proceeds of cyber fraud amounting to approximately Rs 641 crore were initially credited into mule accounts managed and operated by members of certain Telegram groups and were subsequently layered through a web of dummy or shell entities across India to fragment and obscure the source of funds,” the official said.
The laundered funds were later transferred using Indian bank-issued Visa and MasterCard debit cards to the UAE-based fintech platform “PYYPL,” which provides internationally usable prepaid cards regulated by the Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM). From the PYYPL wallets, the funds were either withdrawn overseas-particularly in Dubai-through ATMs and POS transactions or converted into Virtual Digital Assets (VDAs) via the Binance crypto exchange. The funds were then routed through a complex chain of custodial and non-custodial wallets to conceal the money trail and project the proceeds of crime as untainted property.
During the investigation, it was revealed that a structured syndicate comprising well-educated professionals, including Chartered Accountants Ashok Kumar Sharma, Bhaskar Yadav, Ajay and Vipin Yadav, was operating a coordinated money laundering scheme. The syndicate incorporated and controlled more than 20 entities operating from common addresses in Bijwasan, Delhi, with overlapping partners and authorised signatories. These entities also showed convergence in KYC documentation, mobile numbers, and email IDs. They functioned as conduits for the systematic layering of illicit funds and their subsequent transfer outside India.
As part of the investigation, searches were conducted at various locations, including the residences of Ashok Kumar Sharma and Bhaskar Yadav, on November 28, 2024. During the search at the residence of Ashok Kumar Sharma, he allegedly fled the premises and, while evading lawful action, assaulted ED officials. An FIR was subsequently registered at Kapashera Police Station in New Delhi against Ashok Kumar Sharma and his brother Subhash Sharma in connection with the incident.
Bhaskar Yadav also absconded from his residence upon learning that ED officials had arrived to conduct a search.
Incriminating documents, including ATM cards and cheque books of shell entities, were seized from the residence of CA Ashok Kumar Sharma during the search proceedings.
Since 2024, Ashok Kumar Sharma and Bhaskar Yadav had been absconding and sought anticipatory bail to evade investigation. However, their applications were dismissed in 2025 and subsequently by the Delhi High Court.
Thereafter, Bhaskar Yadav filed a Special Leave Petition (SLP) before the Supreme Court, which was also dismissed in 2026 with directions to surrender before the concerned court. Following their surrender, Ashok Kumar Sharma and Bhaskar Yadav were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA).
In this case, the ED effectively contested the matter at all judicial levels, presenting evidence collected during the investigation, which ultimately compelled the accused to surrender before the court.
So far, the ED has arrested a total of 10 individuals in connection with the case, including Ashok Kumar Sharma and Bhaskar Yadav. Two Provisional Attachment Orders (PAOs) have been issued, attaching movable and immovable properties valued at approximately Rs 8.67 crore.
Additionally, two Prosecution Complaints have been filed before the Special PMLA Court, which has taken cognisance of the offences.
Further investigation into the matter is ongoing.
(UNI)
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