3 days ago
Loan app scam: HC dismisses accused's bail plea
Kochi: High court has dismissed the bail plea of M M Sayid Muhammed of Vadakara, the fifth accused in a Prevention of Money Laundering Act case that alleges his involvement in laundering Rs 121 crore in connection with the Chinese loan app scam.
According to prosecution, Muhammed allegedly arranged 289 mule bank accounts in the name of individuals and shell business entities, for which he received financial remuneration from cyber fraudsters. He was arrested in Feb 2025 and has remained in custody since then.
Opposing his bail plea, the Enforcement Directorate submitted that he paid Rs 5,000 per account to arrange the mule bank accounts, the details of which were forwarded to a woman named Leema, who had contacted him online.
These accounts were allegedly used to operate illegal loan applications that cheated the public.
The investigation revealed that proceeds of crime collected from victims through the loan apps were credited into the mule accounts. The amounts were ultimately parked in different shell companies. The funds were then diverted to bank accounts maintained outside India.
In is also alleged that Muhammed arranged crypto accounts and remitted proceeds of crime amounting to Rs 3.47 crore to four foreign crypto wallets. He allegedly received Rs 2 crore as remuneration and distributed Rs 30 lakh to different persons who had helped arrange the mule accounts.
The bench of Justice Bechu Kurian Thomas observed that the materials clearly indicate the petitioner's active involvement in acquiring and transferring the proceeds of crime. Accordingly, the court dismissed his bail plea.
