The Enforcement Directorate (ED) is currently conducting an in-depth investigation into the Mahadev Online Betting scam. Numerous celebrities have come under scrutiny for their involvement in endorsing this betting platform. Subsequently, these celebrities were reported to have performed in various events organised by the app's promoters and other accused.
The payment made to these celebrities is layered through dubious transactions but ultimately paid in cash from the proceeds of online betting, the ED has alleged.
Recently, a lavish Rs 200-crore wedding held in the United Arab Emirates (UAE) again cast a spotlight on the app. The development unfolded as the entire extravagance of the event was paid in cash, further drawing the attention of financial investigators.
Now, As part of its investigation, the ED has summoned Bollywood actor Ranbir Kapoor. The Barfi actor faces allegations of promoting the 'illegal' betting app and accepting payments, which the ED alleges are proceeds of crime. He is required to appear before the agency on Friday (October 6).
The Mahadev Online Book App Investigation: Key Details
Sourabh Chandrakar, one of the promoters of the controversial online betting platform, tied the knot in a grand ceremony in Ras Al-Khaimah in the United Arab Emirates in February. The wedding was attended by several Bollywood celebrities, who also performed at the event, with private jets reportedly ferrying family members and guests to the UAE.
Image: @garg_trupti/XIn September, the ED disclosed details of its investigation into the online money laundering case linked to the Mahadev Online Book betting app. The probe revealed that wedding-related expenses, including payments to planners, dancers, and decorators, were made in cash via hawala channels originating from Mumbai.
The hawala system is an informal method used to move money between different places, involving service providers called hawaladars. This system operates without strict regulations, allowing funds to be transferred regardless of the transaction's nature or the countries involved.
The ED's investigation revealed that the Mahadev Online Book app operated from a central head office in the UAE. The app expanded by franchising "panel/branches" to known associates, with a profit-sharing ratio of 70-30, allowing large-scale hawala operations to transfer betting proceeds to offshore accounts.
In a statement, the ED expressed concern "sudden and illegal riches are being openly flaunted by them."
The agency's investigation exposed that Sourabh Chandrakar and Ravi Uppal, both originally from Chhattisgarh's Bhilai, are the primary promoters of the Mahadev Book app, operating their business from Dubai.
The Mahadev Online Book app offers online casino and betting platforms—activities that are illegal in India. The ED's recent searches at 39 locations across cities like Raipur, Bhopal, Mumbai, and Kolkata led to the seizure of illegal assets worth Rs 417 crore.
"ED has recently conducted widespread searches against the money laundering networks linked with the Mahadev App in cities like Kolkata, Bhopal, Mumbai, etc., and retrieved large amounts of incriminating evidence and has frozen/seized proceeds of crime worth Rs 417 crore," the agency informed in a statement.
The company operated from Dubai, using the online book betting application to enroll new users, create user IDs, and launder money through a complex web of benami (made, done, held or transacted in the name of another person that's considered fictitious) bank accounts.
"The app is an umbrella syndicate arranging online platforms for enabling illegal betting websites to enroll new users, create user IDs and launder money through a layered web of benami bank accounts," the ED informed.
The app also incurred substantial cash expenditures in India for advertising betting websites, aimed at attracting new users and franchise (panel) seekers.
Bollywood celebrities entangled in the scandal
The opulent UAE wedding not only attracted attention to the Mahadev Online Book app but also implicated several celebrities in its web of opulence. Digital evidence reportedly shows the presence of singers Neha Kakkar and Vishal Dadlani, as well as Sunny Leone, Tiger Shroff, and other prominent figures from the entertainment industry at the extravagant event, according to Economic Times.
How the Syndicate Operates, as per ED
The ED's investigation has unveiled the modus operandi of the syndicate behind the Mahadev Online Book app.
Promotional advertisements for the app display a WhatsApp number, through which potential users are directed to a call centre. The call centre then forwards the user's information to a panel operator, who guides the person in opening an account, placing bets, and receiving money.
The probe further revealed that there are approximately 4,000-5,000 panel operators, primarily located in Chhattisgarh, Mumbai, and Delhi. The profit-sharing ratio between the founders of the Mahadev app and panel operators stands at 70:30, while the ratio between customers and the app is 60:40.
Ranbir Kapoor's involvement in the case comes from his appearance in social media ads promoting the Mahadev app and accepting payments in cash, which the agency alleges are proceeds of crime.
According to CNBC-TV18 sources, the ED wants to know whether Ranbir Kapoor was aware that the payments he was accepting were proceeds of crime or not and whether he knew that the app was illegal.
The investigation has also uncovered that the Mahadev app founders operate 4-5 similar apps in India and have launched a similar app in Pakistan. Call centres managing potential customer inquiries are located in Nepal, the UAE, and Sri Lanka.
Many Other Celebrities and Influencers Under Scrutiny
The Enforcement Directorate suspects the involvement of around 12 A-list film celebrities from Bollywood, Tollywood, and other regional film industries, as well as some sports personalities, in promoting the app and accepting payments in cash.
Additionally, about 100 social media influencers are also suspected of promoting the Mahadev app and accepting proceeds of crime as payment.
Politicians are also under the ED's radar, as the agency recently questioned Chattisgarh CM Bhupesh Bagel's advisor and two of the CM's OSDs in connection with the case.
(Edited by : Ajay Vaishnav)
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