In a significant development, the Enforcement Directorate (ED) has conducted extensive searches related to the money laundering networks associated with the Mahadev APP in various cities, including Kolkata, Bhopal, and Mumbai. The operation has yielded substantial incriminating evidence and resulted in the freezing and seizure of proceeds of crime valued at a staggering Rs 417 Crore. This article delves into the details of this operation, shedding light on the intricate web of illegal activities and financial transactions.
Mahadev Online Book Betting APP Investigation
The Directorate of Enforcement (ED) initiated an investigation into M/s Mahadev Online Book Betting APP, which was identified as an umbrella syndicate facilitating illegal betting websites. The syndicate’s modus operandi involved enrolling new users, creating user IDs, and laundering money through a complex network of benami bank accounts.
Main Promoters Operating from Dubai
The investigation unveiled that the main promoters of Mahadev Online Book, Sourabh Chandrakar and Ravi Uppal, are based in Dubai. Their central head office in the UAE operates by franchising “Panels/Branches” to known associates, sharing profits on a 70%-30% ratio. Large-scale hawala operations were used to divert betting proceeds to offshore accounts. Substantial cash expenditures in India were allocated for advertising betting websites and self-promotion, crucial for attracting new users and panel seekers. A previous ED operation in Chhattisgarh led to the arrest of four individuals linked to the syndicate, including the chief liaison officer responsible for paying bribes to senior government officials as “protection money.”
Revelations from Further Investigation
The subsequent phase of the investigation brought forth several startling revelations:
- Extravagant UAE Wedding: In February 2023, Sourabh Chandrakar’s wedding in RAK, UAE, incurred expenses of approximately Rs 200 Crore in cash. The wedding featured private jets transporting family members from Nagpur to the UAE, celebrity performances, and extensive arrangements from Mumbai, all funded through hawala channels.
- Celebrity Endorsements: Many celebrities were found endorsing these betting entities and performing at their events, receiving hefty fees through complex transactions ultimately sourced from online betting proceeds.
- Role of Rapid Travels: M/s Rapid Travels, operated by Dheeraj Ahuja and Vishal Ahuja in Bhopal, was responsible for managing ticketing operations for the Mahadev APP promoters, their associates, and endorsing celebrities. Illicit earnings from betting panels were skillfully deposited with primary ticket providers and used for booking both domestic and international flights.
- Kolkata-Based Hawala Operations: Vikash Chhaparia, based in Kolkata, was identified as the key player handling hawala operations for Mahadev APP. He, along with associates like Govind Kedia, invested heavily in the Indian stock market through Foreign Portfolio Investment (FPI) routes. The ED has frozen cash derivatives and security holdings worth Rs 236.3 Crore linked to entities beneficially owned by Vikas Chhaparia. Additionally, assets worth Rs 160 Crore in DEMAT holdings of Govind Kumar Kedia have been frozen by ED.
Total Seized Assets
To date, the ED has conducted searches at 39 locations across Raipur, Bhopal, Mumbai, and Kolkata, resulting in the seizure of illegal assets valued at Rs 417 Crore. The ED has also initiated international investigations, and the Hon’ble PMLA Special Court in Raipur has issued Non-Bailable Warrants (NBWs) against absconding suspects.
Conclusion
The ED’s operation against the money laundering networks connected to the Mahadev APP sheds light on the scale of illegal activities and financial manipulation in the realm of online betting. The staggering value of frozen and seized assets highlights the extent of the syndicate’s operations. The investigation serves as a stern warning to those involved in such illicit activities, emphasizing the authorities’ commitment to upholding the law and bringing financial wrongdoers to justice. As the investigation continues, further revelations may come to light, leading to legal proceedings against those responsible for these unlawful operations.
