ED Raided Locations Regarding Chinese Online Betting Where Crores Were Raised

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Harsirat Kaur
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Online Betting falls under the illegal track in India. Most types of betting is punishable by law. When the betting is attached to another country and involves flaundering of money and gambling, it becomes even more grave. The Enforcement Directorate initiated a search for Indian locals involved in illegal online betting activities. What makes it even more punishable is that they were using Chinese apps. The Indian government recently banned the apps linked to China after the ties between the two countries severed. So, the online betting related to Chinese apps had to attract the attention of ED.

What did ED found about the online betting?

Online betting in Chinese apps raided by the ED
The fraudsters raised crores of rupees via online betting

The ED froze Rs. 46.96 crores in four bank accounts after the official raided fifteen locations in Delhi, Gurgaon, Mumbai, and Pune. The ED said, “Searches were conducted on the registered offices of the companies, their directors ans chartered accountants involved in illegally running online betting apps from websites which are hosted from outside India.”

Most of the bank accounts identified held with HSBC Bank came in front. The ED conducted the search on the registered offices of the companies. The statement said, “During the course of search, ED has seized 17 hard disks, five laptops, phones, crucial incriminating documents and has also frozen Rs. 46.96 crore held in 4 HSBC Bank accounts.”

The case is based on an FIR filed by the Telangana Police in Hyderabad under various sections of Prevention of Money Laundering Act (PMLA), and the Money Circulation Scheme Act. The accused people included Dhiraj Sarkar, Ankit Kapoor, and Yan Hao, Manager of Beijing Tomorrow Power Company. Some Chinese nationals floated multiple Indian companies. Initially, Indian directors incorporated the companies and then, the Chinese would travel to India and took directorship of these companies.

Scammers involved in online betting arrested by the ED
Source: MBSA

Official Statements by the ED about it all worked

The ED explained how the whole scam functions. The Chinese hired some locals to open HSBC accounts with online wallets, like PayTm, Cashfree, etc. They have lax due diligence mechanisms and this allowed the accused to open pan-India operations. Once the bank accounts started working, internet access comes in the hands of Indian locals from the Chinese. These websites attract gullible customers to place bets on online apps, in return to which they will get rewards. This is how the scammers raised rupees worth crores.

They collected money through e-wallets and hence, e-commerce started growing the illegal business. The ED told the amount information through these e-wallets account. Its statement read, “Account analysis of Linkyun Technology showed that outward foreign remittances to the extent of Rs. 120 crore were made from these accounts.”

The ED found that the scammers did not activate the websites daily. They used one on one day, and the other on another day. The ED is in the process of obtaining more information from online wallet companies and HSBC Bank. India has put emphasis on growing the domestic industry amidst the pandemic. Hence, this case coming counteracts the market policy in the current period.

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