New Delhi [India], September 2 (ANI): The Enforcement Directorate (ED) on Wednesday carried out searches at 12 locations across Maharashtra, Delhi-NCR, Rajasthan and Gujarat in connection with a money laundering case of Cyprus-based illegal online betting platform Parimatch and Ors, officials said.
The searches started early on Wednesday, including five premises in Maharashtra, four in Delhi-NCR, two in Rajasthan and one in Gujarat in the case.
Officials said the fhe premises covered include those of payment companies who have converted betting proceeds into cash through Cash Management System agents, Chartered Accountant (CA) and Company Secretaries who have facilitated shifting the proceeds out of country through illegal remittances and sham Overseas Direct Investment (ODI) investments, and Payment Gateways who have handled paying and payout on behalf of Parimatch.
The search operation is being continued by the ED's Mumbai zonal office under section 17 of PMLA, 2002, which grants authorised officers the power to conduct search and seizure operations if they have documented reasons to believe that a person is involved in money laundering or possesses proceeds of crime, covering premises of the suspects linked to the case.
On May 26 this year, the federal agency had also conducted similar search operations under the Prevention of Money Laundering Act (PMLA), 2002 at 17 locations in Maharashtra, Rajasthan, Delhi, Gujarat, Daman and Uttar Pradesh as part of an ongoing probe in the case of the Cyprus-based illegal online betting platform Parimatch. During the searches, movable assets amounting to approximately Rs 1.56 crore, including cash of around Rs 1.2 crore, were seized.
Further, funds amounting to approximately Rs 3.8 crore lying in various bank accounts were frozen. Various incriminating documents and digital devices were also found and seized during the search proceedings.
ED initiated an investigation on the basis of a First Information Report (FIR) registered by the Cyber Police Station in Mumbai against Parimatch.com for duping users through the online betting platform Parimatch. They defrauded investors, luring them with high returns, generating over Rs 3,000 crore in a year, as gathered from the investigation to date.
The federal agency's investigation conducted so far has revealed that "Parimatch and its associates adopted a complex network of mule accounts, payment intermediaries and financial inclusion channels for collection, layering and transfer of user funds."
"In certain instances, user withdrawals were processed without any direct outward payment from accounts controlled by the platform. Instead, deposits made by other users were routed directly into the withdrawing user's bank account or UPI-ID in multiple tranches, thereby concealing the actual money trail and avoiding a direct payment linkage," the ED had earlier said.
"Investigation has further revealed that user deposits and withdrawals were routed through multiple current accounts opened in the names of software, fintech and technology-related entities, which were also engaged in genuine business activities. Such accounts were allegedly used for collection of user deposits and routing payouts under the guise of vendor payments, business transactions and payment gateway services."
The then search operation had revealed misuse of Banking Correspondent (BC) networks, mobile money transfer agents, Grahak Seva Kendras, Cash Management Services (CMS), local kirana stores and retail outlets for processing payouts and movement of funds linked to the platform.
The ED has informed that "a layered mechanism wherein user funds were routed through retailers and Grahak Seva Kendras operating under Business Correspondent (BC) networks."
"The money was first transferred to such retailers, who then passed it on to the BC, and the BC in turn recharged the wallets of those retailers. Once such wallets were loaded, the retailers used them to make payouts to Parimatch platform users, which were subsequently used for making payouts to Parimatch users, thereby concealing the actual source and trail of funds. Certain agents allegedly diverted cash received through CMS channels and adjusted the same against RTGS transfers sourced from deposits made by Parimatch users, thereby disguising the true origin and trail of funds.
"Such cash funds were subsequently transferred outside India through hawala channels. Further investigation has revealed that Parimatch aggressively promoted its betting platform through surrogate advertisements under the names 'Parimatch Sports' and 'Parimatch News.' Unlike other betting websites, Parimatch focused on hyperlocal marketing wherein it sponsored teams in local cricket leagues across more than 15 States in India, besides hockey and football tournaments," the agency has said.
Its investigation has also revealed that the platform promoted betting-related advertisements through leading quick-commerce applications and circulated promotional material along with grocery deliveries to attract and onboard new users. "Such advertisements were strategically displayed to users during app usage and order placements to attract and onboard new users to the platform."
The ED has so far frozen assets worth Rs 112 crore in this case. (ANI)
ED raids 12 places across four states in Cyprus-based betting platform Parimatch
