Special Court (PMLA) Dimapur orders action against key accused in HPZ token fraud
Guwahati, Jan 23: In a major crackdown on financial fraud, the Special Court (PMLA), Dimapur, on Wednesday officially declared Bhupesh Arora a Fugitive Economic Offender (FEO) under the Fugitive Economic Offenders Act (FEOA), 2018.
The order was based on an application filed by the Enforcement Directorate (ED), Dimapur Sub Zonal Office, in connection with the HPZ Token & Others scam, a massive crypto-based fraud that duped investors across India.
The ED’s investigation was launched after an FIR was registered by the Cyber Crime Police Station, Kohima (Nagaland) under various sections of the IPC, 1860, and the Information Technology Act, 2000. The case involved a fraudulent investment scheme, where unsuspecting investors were lured with promises of astronomical returns for mining Bitcoin and other cryptocurrencies through an app-based token known as “HPZ Token.”
The probe revealed that massive sums of money collected from victims across India were laundered through shell companies and individual entities. Further investigations traced these funds through multiple untraceable layers of transactions, with significant amounts being siphoned abroad.
The ED’s investigation identified Bhupesh Arora and his close associates as the key perpetrators behind the fraudulent scheme. Arora allegedly orchestrated the scam by using shell companies to move illicit funds, routing money through multiple transactions to make it untraceable and transferring substantial amounts abroad to avoid detection.
The total Proceeds of Crime (PoC) unearthed so far stand at ₹2,200 crore, with the ED already attaching and freezing assets worth ₹497.20 crore. This figure is expected to increase as the investigation progresses.
Despite multiple summons issued under Section 50(2) of the PMLA, 2002, Bhupesh Arora refused to appear before the ED. In September 2022, he fled to Dubai after the case was initiated, deliberately avoiding criminal prosecution.
The Gauhati High Court, Kohima Bench, in an order dated September 25, 2023, directed him to cooperate with the investigation, but he failed to comply. Subsequently, the Special Court (PMLA), Dimapur, issued a Non-Bailable Warrant (NBW) in July 2024, which he also ignored.
Following the FEO declaration, the ED has attached multiple assets linked to Bhupesh Arora, including 9 immovable properties worth ₹2.05 crore in Delhi, 286 bank and virtual accounts across 20 states, with a combined balance of ₹459.79 crore and over 200 shell companies, registered either in his name or under his associates, used for money laundering.
The ED continues to investigate additional assets, shell companies, and international transactions linked to the accused.
With Bhupesh Arora now officially declared a Fugitive Economic Offender, Indian authorities are expected to initiate extradition proceedings to bring him back from Dubai to face trial in India. The ED is also working with international agencies to trace and recover siphoned funds.
