This research explores the emerging threat of digital arrest scams in India and the evolving cyber-forensics framework used to combat them. It examines the operational mechanisms of such scams, where cybercriminals impersonate law enforcement officials to extort money from victims, and highlights the jurisdictional, technological, and evidentiary challenges faced by Indian law enforcement agencies. The study delves into the role of mule accounts in laundering illicit funds, the application of advanced forensic tools like Cellebrite UFED, FTK, and EnCase, and the integration of AI-driven models such as the Mule Hunter. It also evaluates the legal responsibilities of intermediaries under the IT Act and the complexities of electronic evidence admissibility. Through a comprehensive analysis of investigative practices, legal frameworks, and inter-agency coordination, the paper proposes strategic pathways to strengthen India’s response to digital arrest fraud and enhance the integrity of cybercrime investigations