The ED (Mumbai Zone-II) carried out searches at 20 locations across Mumbai, Pune, Mehsana, Surat and Hyderabad under the PMLA, 2002. The searches are part of an investigation into a large-scale online betting, gaming and cyber fraud syndicate.
The investigation stems from two predicate offences involving the online gaming and betting platforms “All Panel Exchange” (allpanelexch.com) and MGM91. In those cases, complainants were induced to deposit funds and were subsequently cheated.
ED investigation under the PMLA established that funds collected from victims of both betting platforms were routed and ultimately received in the bank accounts of a Pune-based entity established by Ram U. Ramdhani. Edsom had developed and operated an in-house payment intermediary platform called “iPaisa”, through which it onboarded more than 200 shell and front entities. These entities were referred to internally as “merchants” on behalf of online gaming, betting and cyber fraud operators and their agents, described as “Channel Partners/Carry & Forward Agents”.
The investigation revealed that funds collected from victims of online gaming, betting, and cyber fraud platforms were routed through a vast network of mule bank accounts, the controllers of these betting platforms, and shell entities used to route the proceeds of crime. It also emerged that a significant number of persons involved in operating these online betting and gaming platforms were being directed by Dubai-based persons. The syndicate was further aided by certain cooperative banks, whose infrastructure was used to collect and further layer the illicit proceeds.
The investigation established that the proceeds of crime generated through online betting, gaming and cyber fraud activities were siphoned out through three principal routes. One route involved remittances disguised as trade transactions through over-invoicing. Another involved cash withdrawals from mule accounts opened under the guise of APMC units; a third involved converting funds into cryptocurrency to siphon off the proceeds of crime outside India.
During the search operations, the ED recovered and seized various incriminating documents, digital devices, and other material evidence relating to the layering and diversion of proceeds of crime. In addition, the ED has ordered the freezing of multiple bank accounts of the concerned entities and persons under the provisions of the PMLA, 2002.
In the case, the ED had earlier conducted searches at multiple places in Pune, Mumbai and Bengaluru. It had also arrested Ram U. Ramdhani, founder of Edsom Fintech Pvt Ltd., who remains in judicial custody.
ED teams conducted searches on October 13 at premises linked to individuals and organisations suspected of moving and concealing funds from betting and fraud platforms. As part of the investigation, officials seized documents and digital devices and froze multiple bank accounts. Investigators are still looking into how the iPaisa platform may have helped set up shell companies and use cooperative banks to move money.