Fairplay App Case: ED Raids 19 Locations Across Mumbai And Pune, Seizes Assets Worth INR 8 Cr

The Enforcement Directorate has carried out searches at 19 locations across Mumbai and Pune and seized movable assets, including incriminating documents, digital devices, cash, bank funds, demat account holdings and luxury watches estimated to be worth INR 8 Cr in connection with the Fairplay App money laundering case.

Fairplay app, a subsidiary of Mahadev Book app network, is alleged to have links in illegal broadcasting of cricket/IPL matches and various online betting activities including results of Lok Sabha Elections 2024.

The probe was initiated based on a First Information Report (FIR) lodged by the Nodal Cyber Police in Mumbai, following a complaint from Viacom18 Media Private Limited.

The FIR cited various sections of the Indian Penal Code (IPC), 1860, the Information Technology Act, 2000, and the Copyright Act, 1957, accusing Fairplay Sport LLC and others of causing a revenue loss exceeding INR 100 Cr (proceeds of crime).

The ED investigation uncovered that Fairplay Sport LLC entered into agreements through foreign-based entities in Dubai and Curacao with Indian agencies representing celebrities.

As per ED, Fairplay collected funds through various shell bank accounts. These funds were then layered through a complex network of bank accounts belonging to shell entities and ultimately accumulated in pharmaceutical companies involved in bogus billing.

“Investigation revealed that funds from these companies have been siphoned off to overseas shell entities based out of Hong Kong SAR, China and Dubai. More than 400 bank accounts of shell entities were found to be used for these purposes which are under examination along with trailing/utilisation of funds collected from the public by Fairplay,” the agency added.

Viacom18 had secured the digital rights for streaming the Indian Premier League (IPL) matches from BCCI for a period of five years. Viacom18’s JioCinema announced that it would stream IPL 2023 matches for free on its app. Around the time when the OTT platform began streaming the tournament earlier this year, FairPlay is said to have pushed ads as well as put up hoardings in Mumbai and other major cities and associated itself with the tournament.

Moreover, illegal sports betting platforms like Parimatch, Betway, 1XBet, Betfair, Crickex, Fairplay and Lotus365 intensified their operations in India during the Indian Premier Leauge (IPL). These websites were offering discounts and hosting ‘treasure hunts’ for match tickets to attract cricket enthusiasts.

Betting and gambling are strictly prohibited under the Public Gambling Act, 1867, and are considered illegal in the majority of regions across the country.

Earlier this year, the Central Consumer Protection Authority (CCPA) also issued an advisory warning celebrities and influencers to refrain from promoting such illegal activities.