82-year-old SP Oswal is chairman and managing director of Vardhman Group
A fraudster impersonating Chief Justice of India DY Chandrachud, a fake virtual courtroom and documents closely resembling original ones were part of the elaborate plan through which Vardhman Group head SP Oswal was duped of Rs 7 crore.
Mr Oswal, chairman and managing director of the textile manufacturer, was put under "digital arrest" on August 28 and 29 and made to transfer Rs 7 crore into multiple accounts. Police have managed to freeze these accounts and recover over Rs 5 crore so far. The 82-year-old industrialist spoke to NDTV about how the fraudsters convinced him that he was under probe in a money laundering case.
The First Call
Mr Oswal told NDTV that he received a phone call on September 28 (Saturday). "I was told my phone would be disconnected unless I press the button '9'. I pressed '9' and a voice on the other side said he was calling from CBI's Colaba office. He mentioned a mobile phone number in my name and said someone took the connection by misrepresenting me."
Mr Oswal said he was told about a Canara Bank account in his name. When he said he did not have such an account, the official replied that it was in his name and there had been some financial irregularities in its transactions.
The 'Naresh Goyal Link'
Mr Oswal said the fraudsters, who connected with him on video call, claimed that an account in his name was used for financial irregularities linked to the case against Naresh Goyal, former chairman of Jet Airways who was arrested last year in a money laundering investigation.
"They told me I am a suspect. I told them that it was not my account and that I did not know Naresh Goyal. They said the account had been opened using my Aadhaar details. I told them that I have travelled in Jet Airways, so I may have shared the details for identification and they have a record."
The official then told Mr Oswal that his document might have been misused. "They said I was a suspect till their investigation concluded and that I was in digital custody. They said they would try to protect me and asked me to extend full cooperation. That gave me some confidence that they would protect me and eventually clear me."
The 'Digital Arrest'
Mr Oswal said that at one point in the video call, a man identified himself as Rahul Gupta, the chief investigating officer. "He sent me rules of surveillance. There were some 70 rules. They also told me to write a letter seeking a priority investigation. I did that."
The industrialist said the fraudsters posing as officials recorded his statement. "They asked me about my childhood, education and entry into business. They asked me about my property details. I told them I didn't remember everything, but I would tell them after talking to my manager," he said.
Mr Oswal said he was under video surveillance round the clock. "Whenever I went out of my room, I would tell them and take my phone along so they could see me."
"They told me that I cannot talk to anyone about this matter because it is under the National Secrets Act. They said I and whoever I spoke to can be jailed for three to five years."
Chief Justice Impersonated, Documents Faked
The fraudsters posing as probe agency officials were in civil dress and wore ID cards around their necks, Mr Oswal said. In the background, an office with the Indian flag could be seen. During the video call, the octogenarian was also shown a fake courtroom and a man posing as Chief Justice of India DY Chandrachud heard his case and issued an order. This order was then sent to him over WhatsApp. Following this, he was asked to deposit Rs 7 crore in separate accounts.
A fake arrest warrant served to Mr Oswal has the Enforcement Directorate's monogram and has stamps of ED and Mumbai Police. It also bears the signature of one Niraj Kumar, identified as ED's assistant director. A real arrest warrant served by the ED does not have Mumbai Police's stamp.
A document shared as the Supreme Court order has three revenue stamps, the top court's stamp and the bar association's stamp too. It does have a bar code and digital signature that are found in an actual order of the Supreme Court. Also, the writ petition says the case was "Justice Dhananjaya Y Chandrachud vs Shri Paul Oswal".
"There was Supreme Court emblem on the documents, stamps. Honestly speaking, I was taken in and overwhelmed by the intimidation and assurance that they were going to protect me," Mr Oswal said.
Police Action So Far
Police registered a case on August 31 following a complaint by Mr Oswal. With help from the cybercrime coordination centre under the Union Home Ministry, three accounts to which money had been transferred were frozen and the industrialist got Rs 5.25 crore back. According to the police, this is the biggest-ever recovery in such a case in India.
Police have found that an inter-state gang was behind the crime. Two accused, Atanu Chowdhury and Anand Kumar, have been arrested from Assam's Guwahati. Both are small traders.
Anand Kumar told police that he needed money. He said the gang members told him that his account would be used to move gaming prize funds and he would get a share. "I received 9 crore 20 lakh rupees in my account even though we had agreed on Rs 2 crore."
Police are now looking for the other accused, including alleged mastermind and former bank employee Rumi Kalita. The other accused are Nimmi Bhattacharya, Alok Rangi, Gulam Murtaza and Zakir.
What is 'Digital Arrest'? Is It Real?
'Digital arrest' is a new kind of fraud in which fraudsters tell the target that he or she is under 'digital' or 'virtual' arrest and has to remain connected to them over a video call. The target is told that he/she cannot tell anyone else that they are under a 'digital arrest' and the surveillance does not end till the money is transferred to the fraudsters' accounts.
Police have stressed in several advisories that there is nothing called 'digital arrest' or 'virtual arrest', but the rise in such incidents shows that the message has not reached a large section. The preferred targets of such fraud are senior citizens who are not very savvy with technology and are easily duped by fraudsters into following their instructions.
READ: Surveillance, Fear: How People Are Losing Crores To 'Digital Arrest' Scams