ED chargesheets syndicate running illegal trading, betting platforms

The ED probe has estimated the alleged proceeds of crime (POC) in the case to be ₹404.46 crore, of which it has so far provisionally attached ₹34.26 crore in the forms of assets belonging to the accused, ED officials said

MUMBAI: The Enforcement Directorate (ED) on Monday submitted a chargesheet against several accused persons and entities allegedly connected to a syndicate that operated illegal, unregulated trading (also known as ‘dabba trading’) platforms and online betting activities across Maharashtra, Madhya Pradesh, Gujarat and Tamil Nadu, as well as Dubai in the United Arab Emirates (UAE).

ED chargesheets syndicate running illegal trading, betting platforms

The ED probe has estimated the alleged proceeds of crime (POC) in the case to be ₹404.46 crore, of which it has so far provisionally attached ₹34.26 crore in the forms of assets belonging to the accused, ED officials said on Tuesday. The investigation is based on two police cheating cases, one registered in Mumbai’s N M Joshi Marg police and the other in Indore, Madhya Pradesh. The ED’s chargesheet was submitted to a special court in Indore.

According to ED sources, the investigation revealed the existence of a technologically manipulated ecosystem involving rigged trading platforms, unlawful betting websites and a cross-border laundering mechanism run by the accused persons. “Vishal Agnihotri has been identified as the principal operator, assisted by Tarun Shrivastava who handled the day-to-day financial operations and mule accounts, and Srinivasan Ramasamy who configured manipulated MT5 servers designed to generate false trading outcomes,” an ED official said.

The ED, while probing the syndicate’s alleged parallel betting network, accused a certain Dhaval Jain of operating a platform called LotusBook247, Dharmesh Trivedi for managing an offshore entity called iBull Capital and Nidhi Chandnani for facilitating the movement and spreading of funds through Dubai-based entities, agency officials said. The probe also revealed that the unsuspecting clients were allegedly shown simulated trades on platforms without any linkage to recognised stock exchanges.

The probe revealed that betting platforms such as LotusBook247 and 11Starss operated in a clandestine manner, using anonymous accounts, encrypted communication and cash-based settlements. The investigation identified POC amounting to ₹404.46 crore derived from manipulated trading platforms, illegal betting websites and other unregulated applications, the officials said.

Among the attached assets in the case were immovable properties worth ₹28.60 crore, movable assets valued at ₹3.83 crore and ₹1.83 crore in the form of bank and demat funds. Major seizures effected in the case included ₹5.21 crore in cash, 59.9 kg of silver bars, a 100-gram gold bar, jewellery worth around ₹1.94 crore and luxury watches valued at ₹4.77 crore.