HC Rejects Bail Plea in ED’s Money Laundering Case

Swift Summary

• the Kerala High Court dismissed the bail plea of Sayid Muhammed, fifth accused in a money laundering case linked too a Chinese loan app scam.
• muhammed allegedly facilitated ₹121 crore laundering by arranging 289 mule bank accounts under individual and shell business names.
• According to the Enforcement Directorate (ED), these mule accounts where used in cyber fraud operations targeting victims through illegal loan applications.
• Funds collected were routed through these accounts, parked in shell entities, and eventually diverted to foreign bank accounts and wallets outside India.
• The ED claimed Muhammed received ₹5,000 per account for his role in arranging the mule accounts.
• Justice Bechu Kurian Thomas noted sufficient evidence of the accused’s active involvement in handling proceeds of crime while rejecting his bail plea.

Indian Opinion Analysis
The dismissal of Sayid Muhammed’s bail highlights how digital platforms can be exploited for complex financial crimes like money laundering via illegal loan apps and mule bank accounts. This case illustrates the vulnerability of individuals targeted by cyber fraud schemes and stresses India’s need for enhanced safeguards against digital and financial misuse. It also showcases rigorous enforcement action by agencies like ED aiming to curb cross-border fund diversion-a critical concern for Indian economic security.The judiciary’s stance underscores accountability for those involved at various levels of such operations, reflecting its commitment to deterring online scams that erode public trust in internet-based services.

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