Mahadev betting app case: ED seizes securities, bonds, worth Rs 573 cr

New Delhi: The Enforcement Directorate Monday said it has seized securities, bonds and demat accounts worth Rs 573 crore after it conducted a fresh round of searches in the Mahadev online betting app-linked money laundering case last week.

The federal probe agency, in a statement, said it has found that the "proceeds of crime" generated by the betting platform and its linked syndicates were moved out of the country and later invested in the Indian stock markets in the name of foreign portfolio investments (FPIs).

The searches were conducted on April 16 at premises in Delhi, Mumbai, Indore, Ahmedabad, Chandigarh, Chennai and Odisha's Sambalpur.

"The search action has resulted in the seizure of cash worth Rs 3.29 crore, freezing of securities, bonds and demat accounts worth more than Rs 573 crore besides seizure of various incriminating documents and electronic records," it said.

The Mahadev betting app case made headlines after the agency claimed a few years ago that many high-ranking politicians and bureaucrats from Chhattisgarh were allegedly involved in the illegal operation and subsequent monetary transactions linked to this app. The two main promoters of the app, Sourabh Chandrakar and Ravi Uppal, hail from the state.

Searches have been undertaken in this case by the ED in the past too.

The probe agency said funds were introduced in certain companies to prompt "artificial price fluctuations" of certain small and medium enterprises (SME) sector securities to "cheat" common investors.

"Some of these investments have been identified and frozen during the searches. Investigation is underway to uncover the complete modus operandi of this stock price manipulations." "The seizures made during the searches have also revealed the role of promoters of such listed entities, who have deployed these tainted funds in their company under the guise of preferential issue of shares, sale of promoters/promoter-controlled shares and issue of share warrants," the ED said.

Some of these listed companies were also found to be used for "layering" investment in share markets, according to the federal probe agency.

The promoters of such companies collaborated and colluded with the accused to manipulate to share prices of such firms with the help of "tainted money" to raise their company's valuation using a string of agents and middlemen, it said, adding some of these agents and stock brokers were also covered during the searches.

The ED has so far arrested 13 people in the case and has filed five chargesheets naming 74 accused. It has also attached, frozen or seized properties worth Rs 3,002 crore.

The agency had said the Mahadev Online Betting gaming and betting app is an umbrella syndicate arranging online platforms for enabling illegal betting websites to enrol new users, create user IDs and launder money through a layered web of benami bank accounts.

The projected proceeds of crime in this case are about Rs 6,000 crore, according to the ED.