Links with D-company, the crime syndicate founded and controlled by Dawood Ibrahim; money laundered through at least 500 hawala operators and around 70 shell companies to Middle Eastern countries, including Dubai; and a huge business net in Thailand — these are the latest findings of the probe into India’s biggest online betting scam.
The Mahadev online betting app racket is the new ‘chit fund’ scam of India in terms of its all-encompassing magnitude. As the investigation net by the Enforcement Directorate (ED) widens, a host of influential and powerful people, including senior politicians, bureaucrats, celebrities, and businessmen, get entangled in it.
It is exactly like what happened during the investigation of the Ponzi scheme scams, commonly known as the ‘chit fund’ scam in India. However,
There is only one difference between the Mahadev app and Ponzi schemes — Unlike the ‘chit fund’ scam that primarily ‘cheated’ people of their life savings, the online betting app scam has been putting India’s sovereignty and national security at risk, say top ED officers.
Links with D-company
Ponzi schemes, including Sahara, Sharada, Rose Valley, and others, allegedly looted the depositors of their hard-earned money. Hundreds of them died by suicide. However, there was no ‘national security’ angle. It was an old way of cheating people by promising them bigger returns and luring them into a debt trap.
But as the probe into the Mahadev betting app progresses, the investigators have got their hands on a bunch of crucial data, evidence, and details that can blow the lid off a possible financial conspiracy against the country.
With the details unfolding, it turns out that the promoters of the online betting app, apart from defrauding people, have been laundering money to Middle Eastern countries, including Dubai, operating from Pakistan, and spreading their business in Thailand — all through a large racket of Hawala operators and over 70 shell companies.
During the course of the investigation, the Enforcement Directorate also received Intelligence inputs about the promoters’ connections with the infamous D-company. The Directorate is verifying the information and working on the inputs, News18 has learnt.
Mahadev: A Conglomerate of Fakes
The Mahadev betting app, which was developed by four young individuals from Madhya Pradesh, slowly took over at least 10 such betting apps running across the country illegally. The other apps, that came under the Mahadev betting empire, include Lotus 365, ReddyAnna, and many others.
The Ministry of Home Affairs (MHA), in an order issued in February, restricted at least 138 online betting apps with links to China and other problematic foreign locations. Betting apps like Lotus 365 are registered with foreign countries and not recognised by the Indian government.
However, advertisements through social media and websites for these apps can still be found. On the landing page, the site of the respective apps flashes a WhatsApp number and a registration link for gamers and gamblers. “These apps work like casinos but the only difference is the legal validation. Casinos are regulated, while these apps are completely illegal and they do not have any book of accounts,” said a senior ED officer involved in the investigation process.
“The WhatsApp link leads the person interested in playing or betting to the Paytm or G Pay options. Once they pay, the money goes to the accounts of the panel members who control the app or website interface. After deducting a percentage as commission, the panel members send the money to the Hawala accounts or shell companies. Then, through a process, the money is laundered to offshore accounts. One Hawala operator handles around 200-300 clients,” said another officer.
While digging deep into the details, the ED has also stumbled upon certain proofs that connect the Reddy Anna app with some senior politicians and reveal sensitive connections with Hyderabad. “We have found some sensitive details, which cannot be divulged at this point. We will file a detailed chargesheet this month,” he added.
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