The Enforcement Directorate (ED) on Wednesday conducted raids at 25 locations across India as part of its ongoing investigation under the Foreign Exchange Management Act (FEMA) against overseas-registered online gaming companies operating in India.
These online gaming companies are accused of routing money collected from the general public through gaming websites via multiple bank accounts and remitting it overseas by mis-declaring the purpose of the remittances against import of services/goods.
The ED claims that the funds collected from gaming enthusiasts were funnelled through various bank accounts and then remitted overseas, using deceptive methods to misrepresent the purpose of the remittances. According to the agency, these actions violate the provisions of the FEMA, which prohibit the remittance of income derived from hobbies such as racing, riding, or any other recreational activities.
During the raids, the ED seized Rs 19.55 lakh in cash, $2,695 in foreign currency, and 55 bank accounts belonging to the firms involved in the illegal activities. These bank accounts were allegedly used for layering and remitting the income generated from online gaming operations.
The crackdown by the ED is part of its ongoing efforts to combat financial irregularities and illegal activities in the online gaming sector. The agency has been closely monitoring the operations of overseas-registered companies involved in online gaming within India.
(Edited by : Pradeep John)
