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ED raids fintech involved in illegal online betting; freezes over Rs 3 crore bank deposits

07:18 PM Mar 28, 2023 | PTI |

New Delhi: The Enforcement Directorate on Tuesday said it has frozen Rs 3.05 crore worth bank funds after it raided a fintech company and its promoters who allegedly indulged in illegal online betting and gaming. The raids were carried out on Monday as part of a money laundering investigation against a person identified as Rakesh R Rajdev and an online portal ”//www.wolf777 .com”

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The federal agency, in a statement, said that its case, filed under various sections of the Prevention of Money Laundering Act (PMLA), stems from an Ahmedabad Police FIR which alleged that Rajdev and others opened a bank account in the name of Akash Ojha, using his PAN and Aadhaar, without his knowledge and used that account for transacting Rs 170.7 crore of betting money generated through the above mentioned website.

It was found during probe that the accused were operating through a private communication platform and providing login Id and password to persons who wanted to place bets online. ”This website is providing platform for placing bets on various types of speculation games such as ‘Teen Patti’, ‘Rummy’, ‘Andar Bahar’, ‘Poker’ and also on various live games, including cricket matches,” the ED said.

The players were asked to deposit money in their accounts for buying credits/coins through online mode and once the money is deposited, the person can place bets in the website using the login id and password, it said.

”The money generated through these betting apps (applications) are being traced and it has been found that bank accounts in the name of various fictitious entities have been opened for routing and layering of money and after routing through multiple layers, the money is being sent abroad through bogus entities in guise of import,” the ED alleged.

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The agency said as many as 150 bank accounts were ”involved in the layering of funds received from individual persons” and hence, after the searches, an amount of Rs 3.05 crore kept in these accounts were frozen under sections of the PMLA.

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