ED raids 20 premises in online betting fraud probe

The searches were conducted by the ED’s Mumbai zonal unit under the Prevention of Money Laundering Act (PMLA), 2002. The case stems from two predicate offences in which complainants were allegedly induced to deposit money on the betting platforms and were subsequently cheated

MUMBAI: The Enforcement Directorate (ED) has searched 20 premises across Mumbai, Pune, Mehsana, Surat and Hyderabad as part of a money-laundering probe into alleged fraud linked to online betting platforms All Panel Exchange and MGM91. The agency is investigating how money deposited by victims was allegedly routed through more than 200 shell entities and mule bank accounts before being siphoned off through disguised trade payments, cash withdrawals and cryptocurrency.

ED raids 20 premises in online betting fraud probe

The searches were conducted by the ED’s Mumbai zonal unit under the Prevention of Money Laundering Act (PMLA), 2002. The case stems from two predicate offences in which complainants were allegedly induced to deposit money on the betting platforms and were subsequently cheated.

According to ED sources, the investigation has traced funds collected from victims to bank accounts linked to Pune-based Edsom Fintech Pvt Ltd, established by Ram U Ramdhani.

The company had developed and operated an in-house payment intermediary platform called iPaisa. Through it, Edsom allegedly onboarded more than 200 shell or front entities, described internally as “merchants”, to facilitate transactions for the betting platform operators and their agents, known as “channel partners” or “carry and forward agents”, the sources said.

The agency suspects that the proceeds were moved out through remittances disguised as trade transactions involving over-invoicing, cash withdrawals from mule accounts opened in the names of Agricultural Produce Market Committee (APMC) units, and conversion into cryptocurrency to transfer funds outside India.

During the latest searches, the ED seized documents, digital devices and other material evidence allegedly linked to the movement and diversion of the proceeds of crime. Multiple bank accounts belonging to the entities and individuals concerned have also been frozen under the PMLA.

The agency had earlier conducted searches at several locations in Pune, Mumbai and Bengaluru in the same case. It has also arrested Ramdhani, founder of Edsom Fintech Pvt Ltd, as part of the ongoing investigation.