The Enforcement Directorate (ED) on Friday said it has conducted searches against the money laundering networks linked with Mahadev app in cities like Kolkata, Bhopal and Mumbai among others and retrieved a large volume of incriminating evidence. Post the searches, the agency has frozen/seized proceeds of crime worth Rs 417 crore.
The ED is investigating Mahadev Online Book Betting app which is an umbrella syndicate arranging online platforms for enabling illegal betting websites to enroll new users, create user IDs and laundering of money through a layered web of benami bank accounts.
“Investigation into the matter has revealed that Sourabh Chandrakar and Ravi Uppal who hail from Bhilai, Chhattisgarh, are the main promoters of Mahadev Online Book and are running their operations from Dubai. Their Mahadev Online Book is run from a central Head Office in UAE and operates by franchising “Panel/Branches” to their known associates on 70 per cent to 30 percent profit ratio. Large scale hawala operations are done to siphon off the proceeds of betting to off-shore accounts,” the ED said in a statement.
Large expenditure in cash is also being done in India for advertising of betting websites and self-aggrandizement necessary to attract new users and franchise (panel) seekers.
The ED had earlier conducted searches in Chhattisgarh and arrested four accused persons including the chief liaison of this betting syndicate which was organizing payment of the bribes to senior government functionaries as ‘protection money’, the agency said. Following the searches, the ED has found that Sourabh Chandrakar and Ravi Uppal have created an empire for themselves in the UAE. The sudden and illegal riches are being openly flaunted by them.
In February 2023, Chandrakar got married at RAK, UAE, and for this marriage ceremony, the promoters of Mahadev app spent around Rs 200 crore in cash. Private jets were hired to ferry family members from Nagpur to UAE. Celebrities were hired to perform in the marriage. Wedding planners, dancers, decorators etc were hired from Mumbai and hawala channels were used to make payments in cash, it said.
As per the digital evidence gathered by ED, Rs 112 crore was delivered via hawala to an events management company in the name of R-1 Events Pvt Ltd of Yogesh Popat and hotel bookings costing Rs 42 crore were done by paying in cash in AEDs.
Searches were conducted by ED at the premises of Yogesh Popat, one Mithilesh and other linked organizers and evidence relating to the receipt of Rs 112 crore hawala money is crystallized, it said.
Subsequently, searches were conducted on the angadias named by Yogesh Popat. The searches resulted in seizure of unaccounted cash of Rs 2.37 crore. The probe revealed that many celebrities have been endorsing these betting entities and performing at their functions in return for hefty fees layered through dubious transactions, but ultimately paid from the proceeds of online betting, it said.
The ED conducted searches at the premises of Rapid Travels of Dheeraj Ahuja and Vishal Ahuja at Bhopal. This entity was responsible for the entire ticketing operations of the Mahadev app promoters, family, business associates and even for the celebrities who were endorsing betting websites like fairplay.com, reddyanna app and Mahadev app.
The illicit cash earnings from the betting panels were cleverly deposited by Ahuja brothers with the main ticket providers, and the wallet balance was used to book domestic and international tickets. Rapid Travels was involved in making travel arrangements for most events of Mahadev group including the annual star-studded events organised in UAE in the month of September.
The ED probe also revealed that one Kolkata-based Vikash Chhapariawas was a key player handling all the hawala related operations for the Mahadev app.
The agency conducted searches at his known premises and at his associates like Govid Kedia. It was found that with the help of Kedia, Vikas Chaparia through his entities Perfect Plan Investments LLP, Exim General Trading FZCO and Techpro IT Solutions LLC was investing heavily in the Indian stock market by way of Foreign Portfolio Investment (FPI) route. Cash derivative and other security holdings worth Rs 236.3 crore in the name of entities beneficially owned by Chhaparia have been frozen by ED under the Prevention of Money Laundering Act.