ED charges accused in ₹157 crore mule-account money laundering case

The Enforcement Directorate (ED) filed a third supplementary prosecution complaint against Mehmood Abdul Samad Bhagad for money laundering involving an organized syndicate that used stolen identities to open mule bank accounts for routing proceeds from cyber fraud and illegal online gaming.

Who it concerns: Mehmood Abdul Samad Bhagad (alias Challenger King), other accused individuals, the Special Court (PMLA) Mumbai, and the Enforcement Directorate (ED).

What the ED says it did

• ED filed the 3rd Supplementary Prosecution Complaint on 01.10.2026 under the PMLA, 2002.
• Investigation revealed that shell entities and bank accounts controlled by the accused received more than ₹157 crore.
• Funds were layered through shell entities and withdrawn via hawala channels.
• The modus operandi involved trading USDT cryptocurrency, which was sold to persons engaged in cyber fraud and illegal online gaming/betting in exchange for Indian rupees deposited into mule accounts.
• ED conducted searches in Surat, Malegaon, Ahmedabad, and Mumbai, resulting in the seizure of approximately ₹15 crore in cash and freezing of ₹34 crore in bank accounts.
• A Provisional Attachment Order was issued for movable and immovable properties valued at ₹95 Lakhs.
• Six persons have been arrested to date, and the Special Court (PMLA) has taken cognizance of the initial and two previous supplementary complaints.

Also in the document

• The investigation was initiated based on an FIR registered by Malegaon Chhawani Police Station, Nashik, and re-registered by the Anti-Terrorism Squad (ATS), Maharashtra, regarding deposits of over ₹100 crore in NAMCO Bank, Malegaon.
• The ED states that further investigation is under progress.