The Enforcement Directorate (ED) has delved into a probing investigation surrounding the Mahadev Online Betting scandal. According to sources with insight into the matter, the scope of this scam extends far beyond the realm of online betting. What sets this case apart is the novel method of money laundering it has brought to light — the use of UPI IDs.
Mahadev is an online betting app, which was launched by Saurabh Chandrakar and Ravi Uppal from Bhilai, Chattisgarh. As per the ED, “Mahadev Online Book Betting App is an umbrella syndicate arranging online platforms for enabling illegal betting websites to enrol new users, create User IDs and launder money through a layered web of benami bank accounts. 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."
As per the agency, Chandrakar and Uppal are the main promoters of Mahadev Online Book and their M/s Mahadev Online Book is run from a central Head Office in UAE and operates by franchising “Panel/Branches” to their known associates on a 70:30 profit ratio.
Those involved in the alleged scam used to contact unsuspecting slum dwellers and people with lower incomes. They used to take the UPI details of these people and launder money via these apps. In return, they used to give a very small amount to these people for using their
UPI ID. ED claims that this money was being siphoned off to foreign entities. ED is investigating the extent of this fraud and how much money was laundered via this modus operandi.
ED further states that large expenditure in cash is also being done in India for advertising betting websites and self-aggrandisement necessary to attract new Users and franchise (panel) seekers. ED had earlier conducted searches in Chhattisgarh and arrested four people, including the Chief liaison of this betting syndicate, who was organising payment of bribes to senior government functionaries as 'protection money'.
Recent ED raids in Bhopal, Mumbai, and Kolkata have revealed that the main accused, Chandrakar, got married in UAE in February and that over Rs 200 crore was spent on the wedding. This amount is reportedly the proceeds of crime.
ED further states that private jets were hired to ferry family members from Nagpur to UAE for the wedding and celebrities were hired to perform. Wedding planners, dancers, decorators, etc. were hired from Mumbai, and hawala channels were used to make payments in cash.
In its investigation, ED has revealed that many celebrities have been endorsing these betting entities. These celebrities also perform at various functions of the app promoters and other accused. The payment made to these celebrities is layered through dubious transactions but ultimately paid from the proceeds of online betting.
Sources have told CNBC-TV18 that ED is looking into these celebrities' endorsement agreements and fees as the agency suspects that the celebrities received proceeds of crime via hawala channels as their endorsement and performance fees. These celebrities are singer Atif Aslam, Rahat Fateh Ali Khan, Neha Kakkar, Vishal Dadlani, actor Tiger Shroff, Elli Evram, Bhagyashree, Pulkit Samrat, Sunny Leone, Kirti Kharbanda, Nushrat Bharucha and comedian Bharti Singh, Krishna Abhishek and Ali Azgar.
ED Investigation has revealed that some Pakistani nationals also attended the accused Chandrakar's wedding in UAE. The agency has found that Chandrakar and Uppal were planning to launch a similar app in Pakistan too. They have allegedly also given donations to
Congress in Chattisgarh. Those transactions are also under the ED scanner now as the ED suspects those donations are also the proceeds of crime.
