Mumbai: Enforcement Directorate (ED) is conducting searches at nine locations including Delhi, Noida and Mumbai as part of the ongoing probe against Fair Play, an online betting app. The agency claimed to have seized various documents during the search operation.
According to sources, the searches targeted alleged payment aggregators and firms suspected of being involved in disbursing winnings to individuals who placed bets through the Fairplay betting app. The ED received information indicating that these firms and payment aggregators had utilized their payment gateways to transfer winnings to the winners of bets placed via the Fairplay app.
The investigation revealed that hawala operators were appointed to facilitate the disbursement of winnings through the payment gateway. Details such as winners' bank account information and lists of winnings were reportedly provided, and the payment gateway was misused to transfer funds to the respective winners through these firms and payment aggregators, a tactic used to evade detection by investigative agencies, according to agency sources.
ED discovered the Modus-operandi of misusing of payment gateway in betting after ED recently carried out one such search operation in Gujarat where 20 places were raided and it was found that Rs 800 crore were sent by allegedly misusing the payment gateway within 15 days. Further investigation then revealed the misuse of Payment Gateways to distribute money to winners of betting.
ED is already probing unauthorised streaming of Indian Premier League (IPL) 2023 matches on the Fair Play App and various online betting activities including results of Lok Sabha polls.
Investigation conducted till date revealed that Fairplay, a subsidiary of the Mahadev Group, is accused of collecting funds through various bogus and shell bank accounts. These funds were then layered through a complex web of accounts and accumulated in pharmaceutical companies engaged in fraudulent billing practices.
The funds from these companies have reportedly been siphoned off to shell entities based overseas, including Hong Kong SAR, China, and Dubai. More than 400 bank accounts linked to these shell entities are under examination as part of the probe into how funds collected from the public by Fairplay were utilized.
According to officials, Since the entire operation is managed from offshore, the probe is to unveil the people behind the illicit business.
In June, the ED also conducted a search operation at event management companies involved in securing Bollywood celebrities for promoting and endorsing the Fairplay betting app. The investigation revealed that Fairplay entered into agreements through foreign-based entities in Dubai and Curacao with Indian agencies representing celebrities. It was discovered that these Indian agencies did not perform due diligence on Fairplay before executing the promotional agreements.
Fairplay garnered significant attention due to endorsements by numerous Bollywood personalities, According to sources, more than 40 Bollywood celebrities are under scrutiny for promoting Fair play during the IPL 2023.
