ED searches 27 locations, including Dream 11, in ₹2,434-cr private real-estate fund

The probe is related to alleged fraudulent diversion of funds from a ₹2,434-crore private real-estate fund by several accused persons and entities including private firm Jai Corp Limited, its then promoter, businessman Anand Jain, and other directors and promoters of sister firms

MUMBAI: The Enforcement Directorate (ED) on Friday carried out searches in 27 locations across the country, including the office of online fantasy gaming platform Dream11 and premises linked to its co-founders Harsh Jain and Bhavit Sheth, as part of a money laundering investigation.

ED searches 27 locations, including Dream 11, in ₹2,434-cr private real-estate fund

The probe is related to alleged fraudulent diversion of funds from a ₹2,434-crore private real-estate fund by several accused persons and entities including private firm Jai Corp Limited, its then promoter, businessman Anand Jain, and other directors and promoters of sister firms. ED’s probe is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) on February 18 this year, based on orders passed by the Bombay High Court.

As per the FIR, the irregularities occurred during 2004 to 2017. ED suspects that some public-sector entities too suffered after making investments in the private real-estate fund, officials said.

Dream11, whose co-founders include Jain’s son Harsh, and Bhavit Sheth, is a former jersey sponsor of the Indian cricket team. The Board of Control for Cricket in India (BCCI) ended its association with Dream11 in August after a new law banned real money gaming.

Apart from 23 locations in Mumbai, ED’s searches covered two locations in Bangalore (Karnataka), and a location each in Nashik in Maharashtra and Raipur, Chattisgarh.

The CBI’s case was based on the January 31 order of the high court and is based on allegations of a complainant who had earlier approached Mumbai police’s Economic Offences Wing in 2021 and 2023 with his complaint. Based on the court’s order, the CBI had in February also constituted a Special Investigation Team, headed by IPS officer Sarah Sharma, to probe the case’s allegations. The CBI case was registered under sections of Indian Penal Code relevant to criminal conspiracy, cheating and dishonestly inducing delivery of property, making forged documents for the purpose of cheating, using as genuine the forged documents.

The complainant in the CBI case had alleged of fraud through real-estate fund, claiming that during 2006 to 2008, Jain and his group, and others, floated two entities --- Urban Infrastructure Venture Capital Ltd (UIVCL) and Urban Infrastructure Trustees Ltd (UITL) --- and mobilised funds of ₹2,434 crore from the public for real-estate business in Mumbai and elsewhere, under the scheme of ‘Urban Infrastructure Opportunities Fund’. Further, as part of the scheme, a joint venture capital fund was set up and registered with SEBI (Securities and Exchange Board of India).

It was alleged in the complaint, however, that the accused persons diverted the funds by making investments and granting unsecured loans within the sister concerns, thereby cheating the public. “It is further alleged that the sister concerns of Jai Corp Ltd have shown the unsecured loans as losses, over the period of years, on the basis of false and fabricated documents, in order to justify the construction projects,” the CBI FIR said.

The CBI FIR also alleged fraud related to private real-estate funds in Mauritius and Jersey Channel Islands, fraudulent trading in futures of a petrochemical firm and diversion of bank loans from India to Mauritius and Sharjah, United Arab Emirates, among others.

When contacted by HT about ED’s searches, Dream11’s spokesperson declined to comment. Anand Jain also declined to comment. HT could not reach Harsh Jain.

ED attaches ₹7.93 Cr assets in probe against 1xBet

In a separate money-laundering investigation related to operators of the alleged illegal, offshore betting platform 1xBet, ED’s Delhi unit on Friday said it has attached provisionally assets worth Rs. 7.93 crore. The attached assets belong to a few celebrities, including ex-Indian cricketers Yuvraj Singh and Robin Uthappa, and actors including Sonu Sood, Urvashi Rautela and Mimi Chakraborty.

ED investigation revealed that the celebrities allegedly knowingly entered into endorsement agreements with foreign entities for the promotion of 1xBet through its surrogates. These endorsements were allegedly made in return for payments routed through foreign entities to conceal the illicit origin of the funds, which are linked to the proceeds of crime generated from illegal betting activities.

ED’s investigation revealed that the 1xBet operated in India allegedly without authorisation and used surrogate branding and advertisements to target Indian users through social media, online videos, and print media. Payments for endorsements were allegedly structured through layered transactions using foreign intermediaries to disguise the illegal source of funds.

ED initiated its investigation based on multiple cases registered by various state police agencies against the operators of 1xBet. Earlier, on October 6, ED had attached assets amounting to 11.14 crore of ex-Indian cricketers Shikhar Dhawan and Suresh Raina.