LOXAM app case: On ED’s objection, court rejects bail plea of Bhupesh Arora
A New Delhi court has denied bail to Bhupesh Arora, a major player in a massive cyber investment scam tied to the fake LOXAM app. Arora, labeled a fugitive economic offender, faces charges of money laundering under India’s Prevention of Money Laundering Act (PMLA). The Special PMLA Court made the call on September 20, after the Enforcement Directorate (ED) strongly opposed his release.
Arora dodged authorities for years before the ED nabbed him on July 11, 2025. He had bolted to Dubai in early 2022 with his partners to avoid probes into online frauds. He slipped back into India secretly through the Nepal border, but got caught soon after.
Investigators say Arora played a central role in washing the dirty money from the scam. Statements from witnesses under PMLA rules show he set up cash pulls, converted rupees to foreign currency, and shuttled funds across borders. He worked hand-in-glove with money changers and middlemen to hide the trail.
The ED kicked off its probe under the 2002 PMLA after a July 26, 2022, police FIR from Hyderabad. That report accused Chinese nationals and a handful of Indians of tricking everyday investors through the LOXAM app. They dressed it up as a legit arm of a big French multinational company, dangling crazy-high returns to reel people in.
But it was all a sham. Once investors poured in their cash, the crooks funneled it out of India by swapping it for dollars and euros through shady money exchangers. The ED later filed charges, blasting LOXAM as a total fraud that targeted thousands of trusting folks. Their money vanished into a maze of fake companies, hidden bank accounts, and online payment tricks.
During raids on five spots, the ED grabbed digital gadgets and assets worth over Rs 2.01 crore. Digging into more than 500 bank accounts uncovered over Rs 311 crore in scam proceeds flowing through Xindai Technologies Pvt Ltd and related outfits. From there, the cash got layered into accounts at firms like Ranjan Moneycorp Pvt Ltd and KDS Forex Pvt Ltd.
The plot thickened as those funds turned into foreign cash and shot overseas via underground hawala networks. The ED also spotted nearly Rs 903 crore in suspicious forex deals, linked to shell companies sharing the same IP addresses and payout setups from payment gateways. This matches warning signs from the global Financial Action Task Force (FATF) about cyber-enabled money laundering schemes.
Arora joins others like Rohit Vij in the crosshairs as the ED keeps chasing down this cyber investment fraud ring. Investors hit by LOXAM scams are still waiting for justice amid India’s growing crackdown on digital cons.
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