Mahadev case probe: Betting apps generated proceeds of around ₹43,000 crore in last 7 years, says ED

Mahadev Online Book (MOB) and associated platforms like Skyexchange and Lotus 365 have generated proceeds of crime (POC) in the range of ₹36,000 to ₹43,400 crore through alleged illegal betting operations in the last seven years, said Enforcement Directorate (ED) officials.This is the first consolidated provisional estimation of proceeds of crime of MOB and its allied betting platforms since ED began its investigation in October 2022. (HT File)This is the first consolidated provisional estimation of proceeds of crime of MOB and its allied betting platforms since ED began its investigation in October 2022. So far, the agency has filed five chargesheets against 74 persons and entities in the PMLA court at Raipur, Chhattisgarh.ED officials told HT that they mentioned these figures in their June 5 provisional attachment order submitted by its Raipur unit to the PMLA adjudicating authority in New Delhi. The officials said that despite the crackdown by law enforcement agencies since 2022-23, illegal betting operations have continued through dummy and mirror sites resulting in mounting amount of POC.Investigators said MOB--one of the largest illegal betting syndicates operating through franchise-based networks--generated over ₹450 crore every month which was then laundered through a layered network of shell entities, accommodation entries and financial transactions to disguise the funds as legitimate.Also Read | Mahadev betting app case: ED arrests bizman Vikas Garg in ₹6000 crore money laundering probeThe ED’s June 5 provisional attachment order pertained to assets worth ₹940.77 crore linked to Delhi-based businessman Vikas Garg. These assets, which include residential units, land parcels, equity shares and other securities, were allegedly purchased using laundered POC.ED officials said the attached assets belong to Garg who has since been arrested, members of his family and entities either owned or controlled by him. He used the money allegedly routed from Skyexchange through various entities to acquire shares, securities and other assets, including the alleged acquisition of 97.58% shareholding of a US-based tech company Ebix Inc. through the United States Bankruptcy Court.The Dubai-headquartered MOB concurrently operates more than 2,000 active platforms across India at any given time, with each platform generating average net profits of around ₹30-40 lakh per month (with 70-to-80 per cent flowing upward to the ‘head office’). The aggregate POC generated by MOB and its other alleged allied platforms like Reddy Anna and FairPlay has been estimated at ₹4,000 to 5,000 crore per year “for the period from 2019 till date,” ED officials stated in their June 5 provisional attachment order. This estimate is grounded in panel-level profit data allegedly extracted from seized electronic devices and reconciled with statements of panel operators recorded under the PMLA Act by the ED, the PAO said. An official clarified that the calculation and estimation is provisional in nature.Also Read | ED attaches ₹941-cr assets in Mahadev, Skyexchange probeSkyechange and Lotus365 platformsThe ‘Skyexchange’ online platform, in alleged partnership with MOB co-promoter Sourabh Chandrakar and Ravi Uppal, generated POC estimated at around ₹3,916 crore. This estimate is based on a detailed electronic spread-sheet document that the ED claimed to have recovered from the laptop of a certain individual identified only by the initials, “PB,” during a search operation.The document allegedly recorded the weekly earnings of Skyexchange for each of its ‘Super Admin’ accounts. The document reflects weekly earnings of around ₹22 crore across 178 weeks - from September 2020 to February 28, 2024. The alleged POC from Skyexchange was further corroborated by analyzing the bank account data of its operator’s entities, statements from persons examined under the PMLA, and analyzing the investment portfolios of the Dubai-based Foreign Portfolio Investment (FPI) entities that the operator used as conduit vehicles for deploying the POC into Indian capital markets.ED’s investigation also revealed that analyses of seized digital data revealed that the MOB’s promoters allegedly had “admin IDs” of the Skyexchange betting app. The MOB promoters were also allegedly authorised to further create “master” and “super IDs of Skyexchange betting app, which established that the promoters of MOB were partners in Skyexchange betting apps and were operating both the apps simultaneously, an ED official said.The ‘Lotus365’ online platform is estimated to have allegedly generated POC of around ₹2,400 crore. The figure was arrived at based on estimated collection at the rate of ₹50 crore per month for around 48 months, from April 2020 onwards, said ED officials.The expansion of the MOB network is being viewed by investigators as a phenomenon given that its two alleged masterminds, Chandrakar and Uppal ran a juice shop and a small betting enterprise respectively in Bhilai. Within four years of the two men deciding to collaborate, the Mahadev Book was incorporated as “Mahadevbook Markets Limited” at Saint Vincent and the Grenadines in the Caribbean on June 21, 2021.Also Read | Mahadev app’s Chandrakar held in Oman; India to seek extraditionChandrakar was detained in Oman last month and is awaiting his extradition to India. There are pending Interpol Red Corner Notices against both him and Uppal.