The Enforcement Directorate (ED) searched 19 locations in Mumbai and Pune related to the Fairplay App money laundering case. They seized assets worth INR 8 Cr, including documents, digital devices, cash, bank funds, demat account holdings, and luxury watches.
Fairplay App, part of the Mahadev Book app network, is suspected of illegal activities like broadcasting cricket/IPL matches and online betting, including results of the Lok Sabha Elections 2024. The investigation began after a complaint from Viacom18 Media Private Limited led to an FIR by the Nodal Cyber Police in Mumbai.
ED Uncovers Money Laundering in Fairplay App Case
The FIR implicated Fairplay Sport LLC and others under sections of the Indian Penal Code (IPC), Information Technology Act, and Copyright Act, accusing them of causing a revenue loss exceeding INR 100 Cr through their activities.
ED’s investigation revealed that Fairplay Sport LLC conducted transactions through foreign entities based in Dubai and Curacao, collaborating with Indian agencies representing celebrities. Funds were allegedly collected through shell bank accounts and then layered through a complex network of shell entities’ bank accounts. Ultimately, these funds were found to have accumulated in pharmaceutical companies involved in fictitious billing practices.
ED Uncovers Overseas Money Trail in Fairplay App Case
The Enforcement Directorate (ED) revealed that funds from Indian pharmaceutical companies involved in fake billing were transferred to shell entities based in Hong Kong SAR, China, and Dubai. Over 400 bank accounts belonging to these shell entities are now under scrutiny, along with investigating how funds collected by Fairplay App from the public were used.
Viacom18, having secured digital rights from BCCI, announced that JioCinema would stream IPL 2023 matches for free on its platform. During this time, Fairplay App allegedly advertised heavily and displayed hoardings in Mumbai and other major cities, associating itself with the tournament.
Surge in Illegal Betting Platforms During IPL
During the Indian Premier League (IPL), illegal sports betting platforms like Parimatch, Betway, 1XBet, Betfair, Crickex, Fairplay, and Lotus365 ramped up their operations in India. These platforms offered discounts and organized ‘treasure hunts’ for match tickets to attract cricket fans. Betting and gambling are strictly prohibited under the Public Gambling Act of 1867 and are illegal in most parts of the country.
Earlier this year, the Central Consumer Protection Authority (CCPA) issued a warning advisory to celebrities and influencers, cautioning them against promoting such illegal activities.
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