Guwahati, Jan 23: The Special Court (PMLA), Dimapur, Nagaland, has declared Bhupesh Arora a Fugitive Economic Offender under the provisions of the Fugitive Economic Offenders Act (FEOA), 2018.

The order, dated January 22, 2025, was issued based on an application filed by the Enforcement Directorate (ED), Dimapur Sub-Zonal Office, in connection with the HPZ Token and related cases.

PMLA refers to the Prevention of Money Laundering Act, 2002, na law enacted to prevent and combat money laundering and related financial crimes.

The ED initiated its investigation following an FIR registered by the Cyber Crime Police Station, Kohima (Nagaland), under various sections of the Indian Penal Code (IPC), 1860, and the Information Technology Act, 2000. The case pertains to a large-scale cryptocurrency scam involving the HPZ Token app, which duped investors by falsely promising astronomical returns on investments in Bitcoin and other cryptocurrencies.

The ED’s investigation revealed that the funds collected through this scam, targeting gullible investors across India, were diverted to shell companies and individual entities using fraudulent schemes. Statements recorded during the investigation identified Bhupesh Arora and his close associates as the masterminds behind the operation, which defrauded people nationwide.

Arora is accused of orchestrating multiple layers of transactions to launder the proceeds of the crime, some of which were siphoned out of India. The ED has so far unearthed proceeds of crime amounting to approximately ₹2,200 crore, of which ₹497.20 crore has been attached or frozen. These figures are expected to increase as the investigation progresses.

Arora repeatedly failed to appear before the ED despite summons issued under Section 50(2) of the Prevention of Money Laundering Act (PMLA), 2002. The Gauhati High Court, Kohima Bench, directed him on September 25, 2023, to cooperate with the investigation, but he failed to comply. The Special Court (PMLA), Dimapur, subsequently issued summons and a Non-Bailable Warrant (NBW) against him in July 2024.

The investigation revealed that Arora fled to Dubai in September 2022 after the PMLA case was initiated to evade prosecution. Despite multiple efforts by authorities to secure his return, he refused to face trial in India. Consequently, the ED filed an application under Section 4 of the FEOA, 2018, seeking to declare him a Fugitive Economic Offender. The application was allowed by the Special Court (PMLA), Dimapur, on January 22, 2025.

The ED has so far attached nine immovable properties worth ₹2.05 crore in Delhi belonging to Arora, along with 286 bank and virtual accounts across 20 states, including Delhi, Maharashtra, Rajasthan, Assam, Uttar Pradesh, Chhattisgarh, Madhya Pradesh, Odisha, and Telangana, containing ₹459.79 crore.

Arora reportedly created over 200 companies, including private limited firms, in his name or in the names of his relatives and associates to create an opaque network for laundering money. The ED is conducting further investigations to identify additional entities and accounts used in the fraudulent scheme.

The case remains under active investigation.

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