New Delhi, Nov 6 (PTI) The Enforcement Directorate (ED) announced on Thursday that it has attached assets totaling Rs 11.14 crore belonging to former cricketers Shikhar Dhawan and Suresh Raina as part of a money-laundering investigation. This probe is connected to an alleged illegal betting platform involving over Rs 1,000 crore.
A provisional order under the Prevention of Money Laundering Act (PMLA) has been issued to seize a commercial land in Delhi belonging to Dhawan, valued at Rs 4.5 crore, as well as Raina's mutual fund worth Rs 6.64 crore, both linked to the online betting site 1xBet, according to the federal agency. The ED uncovered that these former cricketers deliberately entered into endorsement deals with international entities to promote 1xBet and its affiliates.
The ED's statement alleged, "These endorsements were exchanged for payments that were routed through foreign entities to obscure the illegal origins of the funds, linked to proceeds of crime from unlawful betting activities." Sources indicate the ED regards these assets as "proceeds of crime" stemming from illegal betting. This ED order can be contested before the Adjudicating Authority of the PMLA and other legal mechanisms.
No immediate statements were made by the two ex-cricketers. Dhawan retired from cricket entirely in August, whereas Raina retired in 2020. The ED has identified 6,000 mule bank accounts used for illicit transactions, searched four payment gateways that facilitated betting funds, and traced 60 bank accounts associated with these platforms containing deposits surpassing Rs 4 crore.
The federal agency's investigation against 1xBet and its surrogate brand, 1xBat, was initiated based on multiple police FIRs. The sporting lines of 1xBat were involved in promoting and enabling illicit online betting and gambling operations throughout India, as alleged by the agency.
According to the ED, "1xBet operated in India without authorization, employing surrogate branding and advertisements to reach Indian audiences via social media, online videos, and print media. The payments for endorsements were meticulously structured through layered transactions using foreign intermediaries to disguise the illegal fund sources." The investigation revealed 1xBet was "facilitating" betting and gambling for Indian users by collecting funds through various mule accounts. The ED also claimed merchants were onboarded on these payment platforms "without" any Know Your Customer (KYC) verification.
The agency stated, "On reviewing the profiles of these merchants, it became apparent that the declared business activities did not align with their transaction patterns, pointing to money laundering exceeding Rs 1,000 crore." The ED urged caution among individuals regarding online betting and gambling.
It warned that those knowingly facilitating or permitting the use of their accounts for such activities could face prosecution under the PMLA, which sanctions imprisonment up to seven years, along with the attachment of assets derived from such illegal dealings. The Indian government enacted a law a few months back to prohibit real-money online gaming within the country.
In addition to Dhawan and Raina, the ED has questioned other sports figures like Yuvraj Singh and Robin Uthappa, as well as actors Sonu Sood and Urvashi Rautela (the Indian brand ambassador for 1xBet), among others, as part of this ongoing probe. As estimated by market analysts and investigative agencies, before the government's ban, around 22 crore Indian users were engaged on various online betting platforms, with about 50% regularly participating.
The ED emphasized that "illegal betting and gambling not only inflict economic detriment but also promote money laundering and the funding of unlawful activities."
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