SUMMARY
The investigation revealed that the accused two individuals had fraudulently created 14 group entities to defraud the public in the name of online gambling
In April, the DGGI issued notices to 38 such platforms for allegedly laundering money and tax evasion to the tune of INR 12,000 Cr
Earlier in the year, India banned 138 offshore betting platforms
In an ongoing effort to curb illegal online gambling platforms, the Enforcement Directorate (ED) has attached INR 5.87 Cr from several individuals and entities under the Prevention of Money Laundering Act, 2002.
In a press statement on Sunday (August 27), ED said it initiated an investigation following an FIR registered by Vivek Nagar Police Station in Bengaluru based on a complaint received from the office of Directorate General of Goods and Services Tax Intelligence (DGGI), Bengaluru. The FIR alleged companies’ involvement in online gambling, betting and suspicious illegal activities.
The investigation revealed that the accused two individuals, Shyamala N and Umar Farooq, had fraudulently registered multiple companies using documents of others. The duo had created 14 group entities to defraud the public by luring them into online gambling via sites such as bestartech, khelo24bet and betinexchange.
While the investigation is still underway, various government agencies have intensified their crackdown on domestic and foreign online gambling platforms.
In April, the DGGI issued notices to 38 such platforms for allegedly laundering money and tax evasion. Authorities have pegged the quantum of tax evasion at around INR 12,000 Cr for the period between April 2019 and November 2022.
Earlier in the year, India banned 138 offshore betting platforms. In an order issued on February 5, the Ministry of Home Affairs (MHA) directed the Ministry of Electronics and Information Technology (MeitY) to ban and block 232 apps that either originate or have links to China. Among these were 138 betting and 94 online lending apps.
Indian states have also moved their separate legislation to ban online gambling. Tamil Nadu, for instance, passed a new law to ban online gambling after the Madras High Court struck down its 2021 law.
Additionally, the Ministry of Information and Broadcasting (MIB) issued advisories in June and July to restrict outdoor and media advertising related to betting and gambling platforms.
