Continuing its drive to combat unlawful online gambling platforms, the Enforcement Directorate (ED) has seized INR 5.87 Cr from multiple individuals and entities under the Prevention of Money Laundering Act, 2002.
ED Investigation Triggers by FIR
In an official press release on Sunday (August 27), the ED announced that it launched a probe based on a First Information Report (FIR) filed by the Vivek Nagar Police Station in Bengaluru. The FIR originated from a complaint lodged by the Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru, alleging involvement of companies in online gambling, betting, and suspicious illegal activities.
Fraudulent Activities Unearthed
The investigation brought to light a scheme orchestrated by two individuals, Shyamala N and Umar Farooq. These individuals deceitfully registered numerous companies using forged documents of others. The duo masterminded a network of 14 entities aimed at deceiving the public into engaging in online gambling through platforms like bestartech, khelo24bet, and betinexchange.
Wider Crackdown by Government Agencies
While the investigation remains ongoing, various governmental bodies have intensified their efforts to combat both domestic and foreign online gambling platforms.
In April, the DGGI issued notices to 38 such platforms, accusing them of money laundering and tax evasion. Authorities estimate the amount of tax evaded during the period from April 2019 to November 2022 to be around INR 12,000 Cr.
ED Comprehensive Measures to Curtail Online Gambling
In a bid to curb illegal online gambling, India has implemented a series of stringent measures. Earlier this year, the Ministry of Home Affairs (MHA) banned 138 offshore betting platforms. On February 5, a directive was issued. It ordered the Ministry of Electronics and Information Technology (MeitY) to block and prohibit 232 apps connected to China. These apps include 138 betting and 94 online lending apps.
Furthermore, individual states in India have taken their own steps to clamp down on online gambling. For instance, Tamil Nadu enacted a new law banning online gambling after the Madras High Court invalidated its 2021 legislation.
The Ministry of Information and Broadcasting (MIB) issued advisories in June and July. These advisories advised against outdoor and media advertising. The focus was on betting and gambling platforms. The goal was to complement existing efforts.
