New Delhi/Bhubaneswar: The Central Bureau of Investigation (CBI) has arrested three accused and conducted searches at seven locations across Odisha and Rajasthan in connection with a Rs 2.07 crore digital arrest scam, officials said on Friday.

The searches were carried out on June 30 as part of an ongoing investigation into an alleged cyber fraud in which a retired public servant was coerced into transferring Rs 2.07 crore under the threat of a "digital arrest."

The case is being investigated by the CBI following directions from the Punjab and Haryana High Court. The agency registered the case on March 25, 2026.

The arrested accused have been identified as Bibekananda Dixit and Jayant Kumar Acharya, both from Balasore district in Odisha, and Kanhaiya Lal from Nagaur in Rajasthan.

How the Rs 2.07 crore digital arrest scam was executed

According to the CBI, the investigation revealed that the defrauded money was routed through a bank account opened in the name of a trust before being layered and transferred through multiple bank accounts to conceal the proceeds of crime.

The agency alleged that the three accused played an active role in the movement and laundering of the fraudulently obtained funds.

During the searches conducted at seven locations in Odisha and Rajasthan, the CBI seized several incriminating documents and electronic devices, which are expected to aid further investigation.

The agency is continuing its probe to identify other individuals involved in the cyber fraud network and trace the complete money trail.

The "digital arrest" scam is a growing form of cybercrime in which fraudsters impersonate law enforcement or government officials and intimidate victims through video calls or fabricated legal threats, forcing them to transfer large sums of money under the false pretext of avoiding arrest or prosecution.