Vardhman Group chairman digital arrest: Key accused arrested after ED conducts multi-state searches

According to official sources, Kalita’s arrest came after the ED conducted searches on December 22 at 11 locations across the states of Punjab, Haryana, Rajasthan, Gujarat and Assam under PMLA provisions. During the search operations, various incriminating documents and digital devices were allegedly recovered and seized.

The investigation was initiated on the basis of a First Information Report (FIR) registered by the Cyber Crime police station in Ludhiana under various provisions of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. Subsequently, nine more FIRs registered by different police authorities across the country, pertaining to cybercrime and digital arrest cases involving the same group of criminals, were also taken up as part of the investigation.

According to the ED, its probe revealed that during the ‘digital arrest’, fraudsters impersonating officers of the Central Bureau of Investigation (CBI) used forged official and judicial documents to coerce him into transferring ₹7 crore into various bank accounts. Of this amount, ₹5.24 crore was traced, recovered from the accounts, and transferred back.

The remaining amount was transferred into multiple mule accounts held in the names of various entities and individuals, including labourers and delivery boys, the ED said. These funds were either further diverted through layered transactions or withdrawn in cash immediately.

Kalita accused of using banking credentials of mule accounts

The investigation allegedly uncovered that amounts cheated from various victims were swiftly routed through mule accounts operated by a group of individuals. The banking credentials of these mule accounts were allegedly being used by Kalita, who, in return, was to receive a percentage of the money, as her share. Evidence gathered during the searches indicated that she was deeply involved in the diversion and layering of the proceeds of crime, the ED said.

Officials also stated that earlier searches conducted on January 31 in the same case had resulted in the recovery and seizure of incriminating documents.

Providing further details, the Ludhiana police stated that on August 29 and 30, 2023, the accused contacted Oswal on his personal phone number while posing as CBI officials. They claimed that a Malaysia-bound parcel, allegedly sent by his company, had been confiscated by Mumbai Customs and was found to contain 58 passports and 16 ATM cards. The accused further told him that arrest warrants had been issued against him by the Supreme Court.

Under pressure and threat of legal consequences, the industrialist was allegedly kept under digital arrest for at least 48 hours and was warned not to share the matter with anyone. Following this, he transferred ₹7 crore to the bank accounts provided by the accused.

The Vardhman Group, established in 1965, is a leading textile manufacturing conglomerate with a current turnover of over USD 1 billion.

Further action is expected as the ED continues to trace the money trail and identify other individuals involved in the cyber fraud and money laundering network.