ED arrests 2 CAs in ₹641-crore PMLA case (2026)

What the ED action is about

The Directorate of Enforcement (ED) has arrested two chartered accountants in a cyber-enabled fraud and money laundering probe involving alleged proceeds of crime of about ₹641 crore. Officials said the funds were routed through mule accounts, shell entities and overseas financial platforms. The arrests add to a wider investigation in which the agency says it has already taken multiple custodial and asset-attachment steps.

The accused have been identified as Ashok Kumar Sharma and Bhaskar Yadav. The ED said both had been absconding since searches conducted in November 2024. After a Supreme Court direction to surrender, the two appeared before the court and were taken into custody by the agency.

Who was arrested and when

ED officials said Sharma and Yadav were arrested on February 28, 2026, by the agency’s headquarters unit in New Delhi. The arrests were made under the Prevention of Money Laundering Act (PMLA), 2002. The ED said the arrests followed their surrender before a court.

According to officials, both accused had made multiple attempts to secure anticipatory bail, but these efforts were rejected. The matter also reached the Supreme Court. In Bhaskar Yadav’s case, officials said his special leave petition was dismissed on February 18, 2026, with directions to surrender before the concerned court.

Searches in November 2024 and the absconding period

The ED said it carried out searches at several locations on November 28, 2024, including the residences of Sharma and Yadav. After these searches, the agency said both individuals remained absconding.

In Sharma’s case, the ED alleged he fled the premises during the search. The agency also claimed he assaulted ED officials while trying to evade action. Officials said this led to an FIR being registered at Kapashera Police Station against him and his brother, Subhash Sharma.

Officials further said Bhaskar Yadav also absconded after learning that ED teams had reached his residence to conduct searches.

The alleged syndicate and shell-entity structure

The ED said the laundering operation was run by a structured syndicate comprising educated professionals, including chartered accountants. Along with Sharma and Yadav, the names Ajay and Vipin Yadav were cited by officials as part of the alleged group.

Officials alleged the group incorporated and controlled more than 20 entities that operated from common addresses in Bijwasan, Delhi. These entities, the ED said, had overlapping partners and authorised signatories. Investigators also found that they shared common KYC documents, mobile numbers and email IDs, which the ED described as indicators of coordinated activity.

How the money trail allegedly moved overseas

The ED said the laundered funds were transferred using debit cards issued by Indian banks to a UAE-based fintech platform called PYYPL. Officials said money was later withdrawn abroad, particularly in Dubai. The ED described withdrawals through ATM and point-of-sale transactions as part of the alleged laundering mechanism.

The agency’s account places overseas platforms at the centre of the alleged layering process. The ED said the trail involved movement of funds out of India after they were routed through accounts and entities that investigators suspect were controlled by the syndicate.

Crypto conversion via Binance, ED says

Investigators also found that part of the funds were converted into cryptocurrency using the Binance exchange, according to officials. The ED said the funds were then routed across multiple digital wallets. Officials said this was done to obscure the money trail.

The agency has not, in the information provided, disclosed the exact split between funds routed through overseas fintech channels and funds converted into cryptocurrency. It has, however, flagged both channels as part of the alleged laundering design.

Seizures and documents cited by investigators

During the search at Sharma’s residence, ED officials said they seized several incriminating documents. The items mentioned by the agency included ATM cards and cheque books linked to shell entities. The ED said these instruments were allegedly used in the laundering operation.

The agency has not detailed the full inventory of what was seized across all locations. It has also not disclosed further operational specifics beyond the references to debit cards, shell entities, and crypto wallet routing.

Legal steps under PMLA: arrest, attachment, prosecution complaints

Following the Supreme Court order and the surrender before court, the ED said it arrested both accused under Section 19 of the PMLA. Officials said a total of 10 individuals have been arrested so far in the case, including Sharma and Yadav.

The ED also said it issued two Provisional Attachment Orders. Under these orders, it attached movable and immovable assets valued at about ₹8.67 crore that it linked to the proceeds of crime.

In addition, officials said two prosecution complaints have been filed before the Special PMLA Court, and that the court has already taken cognisance of the complaints.

Key facts at a glance

Why the case matters for financial crime enforcement

The ED’s description of the case highlights three layers it says were used to move and conceal money: mule accounts, shell entities, and overseas or digital channels. Officials also pointed to the use of common KYC documents and overlapping signatories across entities as a red flag in the alleged structure.

The case also underlines the agency’s parallel track of pursuing arrests and asset attachment under the PMLA. With prosecution complaints already filed and cognisance taken by the special court, the matter is now positioned for further court-led proceedings alongside continuing investigation.

What happens next

ED officials said further investigation is ongoing to trace additional assets and identify other individuals involved in the alleged cyber fraud and money laundering network. The agency has not provided a timeline for the next filings or for additional attachments. Future developments, based on the information shared, are expected to come through further investigative actions and proceedings before the Special PMLA Court.