MUMBAI: The Enforcement Directorate has searched 20 premises across Mumbai, Pune, Mehsana, Surat and Hyderabad as part of a money-laundering investigation into an alleged online betting, gaming and cyber-fraud network, according to reports citing an agency statement.
The searches were conducted by the ED’s Mumbai Zone-II on October 13 under the Prevention of Money Laundering Act, 2002. Officials seized documents, digital devices and other material that the agency said related to the alleged layering and diversion of proceeds of crime. Multiple bank accounts linked to the entities and individuals under investigation were also ordered frozen, the reports said.
The investigation stems from two predicate offences linked to the online betting and gaming platforms All Panel Exchange and MGM91. Complainants were allegedly induced to deposit funds and subsequently cheated, according to the ED’s account reported by ETV Bharat and IANS.
The agency alleged that money collected from victims was routed through several bank accounts before reaching a Pune-based entity established by Ram U Ramdhani. Edsom Fintech Private Limited, founded by Ramdhani, allegedly developed and operated an in-house payment intermediary called iPaisa.
According to the ED, iPaisa onboarded more than 200 shell or front entities, internally described as “merchants”, for online gaming, betting and cyber-fraud operators and their agents. Investigators also claimed to have identified a wider network of mule accounts used to move and conceal the alleged proceeds.
The ED alleged that several people operating the platforms were directed by persons based in Dubai. It further claimed that the syndicate used infrastructure belonging to certain cooperative banks to collect and layer funds. The reports did not identify the banks.
Investigators identified three alleged routes for transferring the proceeds out of India: remittances presented as trade transactions through over-invoicing; cash withdrawals from mule accounts opened under the guise of Agricultural Produce Market Committee units; and conversion of funds into cryptocurrency.
The agency had earlier searched locations in Pune, Mumbai and Bengaluru in the same case. Ramdhani was arrested during the investigation and remains in judicial custody, according to the reports. Further investigation is underway.