Hyderabad: The Enforcement Directorate (ED) searched three locations in Hyderabad in a Rs 26.02 crore stock market cyber fraud case. The Kochi Zonal Office team targeted the residences and business establishments of prime accused Allamraju Satyanarayana Murthy.
The case involved a businessman from Ernakulam, Kerala, identified as Nimesh. Cyber fraudsters contacted him through Telegram messages and phone calls. They urged him to invest in stock market trading through their website. They promised substantial returns within a short period.
The victim transferred Rs 24.76 crore to several bank accounts in instalments. The transfers took place between May 23, 2023, and May 27, 2024. Including the promised profits, the alleged fraud amounted to Rs 26.02 crore.
Nimesh realised he had been cheated when the operators failed to return his investment and profits. He then lodged a complaint at the Ernakulam Cyber Police Station. Based on the police FIR, the ED began a money laundering probe under the Prevention of Money Laundering Act (PMLA).
Stock market cyber fraud probe uncovers shell companies
During the searches, ED officials found that Satyanarayana Murthy allegedly operated several shell companies. He had registered them in the names of family members and employees.
Documents seized during the operation showed the movement of suspected cybercrime proceeds through accounts linked to BTR Industries, Velugu Trading Company, Asritha Mega Solutions and Asritha Infra Projects.
The ED seized Rs 6.40 lakh in cash. Officials also collected digital evidence and key documents. They froze Rs 14 lakh in 11 bank accounts linked to the accused.
Investigators identified plots and villas worth around Rs 5 crore. They suspected that the accused had bought these properties with money taken from the victim.
The stock market cyber fraud probe also focused on other members of the network. The ED intensified its investigation to identify and trace the remaining alleged masterminds.