HC dismisses bail plea of accused in money laundering case registered by ED

The Kerala High Court has dismissed the bail plea of Sayid Muhammed of Vadakara, who had been arraigned as the fifth accused in a money laundering case registered by the Enforcement Directorate (ED).

The allegation was that he was involved in laundering ₹121 crore in connection with a Chinese loan app scam. He allegedly arranged 289 mule bank accounts in the name of individuals and shell business entities, for which he reportedly received remuneration from cyber fraudsters. He was arrested in February 2025 and has been in custody since then.

Opposing his bail plea, the ED submitted that he paid ₹5,000 per account to arrange the mule bank accounts, which were allegedly used to operate illegal loan applications that cheated the public. A probe revealed that money collected from victims through online platforms was credited into mule accounts. These were then routed through these accounts and parked in different companies, which were merely shell entities. The ED also alleged that the funds were eventually diverted to bank accounts that were maintained outside India.

The agency further said that ₹121 crore was collected from victims and transferred to four foreign wallets located outside the country. While dismissing his bail plea, the Bench of Justice Bechu Kurian Thomas observed that the materials clearly indicated the accused’s active involvement in acquiring and transferring the proceeds of crime.