The Enforcement Directorate (ED) has summoned Google and Meta representatives to the head office in Delhi on July 21, as part of a larger investigation into the alleged money laundering related to online betting applications. Now, this anti-money laundering probe is looking into how illegal dabba trading schemes and betting platforms intersect and whether they violate the Prevention of Money Laundering Act (PMLA). This is a clear indication showing the increased focus that the regulators would put on the digital ecosystem facilitating unlawful gaming activities.
As per sources who are aware of the investigation, Google and Meta are being investigated for allegedly aiding the dissemination of betting apps by allowing paid advertisements of them intended for an audience of potential users. The ED enquired whether the tech companies caused illegal betting activities to flourish on their platforms either intentionally or unwittingly by means of targeted promotions and advertising strategies.
Unveiling the Financial Networks: Hawala Routes and Illicit Profits
Investigation by the ED found complex layers of financial channels through which, in crores, the processes appear to have been decided to launder. The agency is studying the digital and financial records of hawala operators and fund handlers related to the betting platforms. Recent raids in Mumbai revealed the presence of a huge amount of unaccounted cash (₹3.3 crore), along with foreign currencies, luxury assets and cash-counting equipment, thus evidencing the enormity of the operation.
Case Origins and Legal Framework
The probe goes back to the First Information Report (FIR) lodged on January 9, at the Lasudiya Police Station in Indore, in virtue of the sections 319(2) and 318(4) of the Bharatiya Nyaya Sanhita, erstwhile IPC Sections 419 and 420. The FIR has triggered a multi-pronged investigation about fraudulent gaming schemes misrepresented as skill-based platforms but primarily involved in illegal gambling.
Key Entities and Individuals Under Scrutiny
Among the examined EDs are entities such as VMoney, VM Trading, Standard Trades Ltd, IBull Capital Ltd, LotusBook, 11Starss, and GameBetLeague. They have drawn up complicated ownership and profit-sharing structures in their investigations. For example, Vishal Agnihotri’s own VMoney and 11Starss, the others included a profit-sharing agreement wherein he acquired administrative rights to LotusBook and then transferred the same to Dhaval Devraj Jain, co-owner of a white-label betting platform developed along with John States (alias, Pandey) furthermore, Mayur Padya was hailed as a hawala operator, who was believed to have operated transfers on the cash-based fund-holding within betting operations.
Regulatory Crackdown on Digital Gambling Ecosystem
The summoning of Google and Meta has made an impression for authorities in what seems a major clampdown on the illegal betting syndicates probably using digital channels for their nefarious ends. This development will most likely redefine the area within which cases unravel in the client’s investigation as the Enforcement Directorate intensifies its dive into these financial webs. The case raises once again the challenging circumstance in which all countries find themselves trying to police online platforms and embrace everything tech has to contribute to commerce and public safety. Perhaps this inquiry might set precedents for future oversight of tech companies creating controversial or illegal services through digital advertisement.
