Fairplay betting case: Arrested accused’s firms assisted in operations

MUMBAI: ED claims arrested brothers aided Fairplay's online betting via firms in Mumbai and Dubai, managing software and evading regulations.

MUMBAI: Two firms co-founded by the two arrested accused in the Fairplay money-laundering case assisted in the online betting platform’s operations, according to officials from the Enforcement Directorate (ED). The two firms, based in Mumbai and Dubai, were used to build software for Fairplay and maintain the online betting platform, the agency’s investigation has revealed.

Fairplay betting case: Arrested accused’s firms assisted in operations

The two arrested accused, brothers Chirag Shah and Chintan Shah, allegedly co-founded Mumbai-headquartered Wohlig Transformations Pvt Ltd, which was instrumental in designing, developing and managing multiple URLs associated with Fairplay, ensuring seamless functionality despite regulatory scrutiny, officials said.

To further strengthen the betting platform’s technological backbone, the Shah brothers allegedly incorporated another company in Dubai, called Wohlig Transformation FZE LLC. This company had a critical role in handling Fairplay’s software infrastructure, platform maintenance and operational updates, officials added.

Chirag and Chintan Shah, who were arrested late Wednesday, were the “principal associates” in the operation of Fairplay, which was being run primarily by a man identified as KL Shah (not related) from Dubai, officials said. The Shah brothers’ responsibilities allegedly included regularly updating and rotating bank accounts linked to Fairplay, managing WhatsApp and Telegram numbers for transactions, overseeing UPI-based fund collections and crypto-currencies like Ethereum, maintaining daily user activity records, and enabling Fairplay’s expansion while evading regulatory scrutiny.

Earlier, the ED’s investigation had revealed that KL Shah allegedly registered multiple firms, such as Play Ventures N.V and Dutch Antilles Management N.V in Curacao (a Dutch Caribbean island where betting is legal), Fair Play Sport LLC and Fairplay Management DMCC in Dubai, and Play Ventures Holding Limited in Malta (another betting haven), to conduct Fairplay’s operations.

The ED had summoned KL Shah and two other suspects based in Dubai, identified as TK Shah and SS Iyer, for questioning under the provisions of the Prevention of Money Laundering Act (PMLA), but they allegedly did not join the investigation, officials said.

The agency had initiated the money laundering investigation based on an FIR registered by Maharashtra cyber police in April 2023 against Dubai-based Fairplay Sport LLC and others. The FIR was based on a complaint filed by a representative of broadcaster Viacom18 Media Pvt Ltd, which alleged that the accused entities had caused the company a loss of over ₹100 crore by illegally broadcasting cricket matches.

The ED also found that Fairplay had allegedly made agreements through foreign entities based in Dubai and Curacao with Indian agencies representing celebrities. These agencies allegedly did not do due diligence before executing the agreements to promote the platform.

According to ED officials, Fairplay allegedly collected its funds through a complex web of over 400 bank accounts belonging to shell companies, and pharmaceutical firms involved in bogus billing. The funds from such firms were siphoned off to overseas shell entities operating from Hong Kong and Dubai. Two fintech firms then allegedly facilitated the payouts to Fairplay users.

The ED’s probe found that Fairplay allegedly does not have a legal presence or registered entity in India to conduct business activities. It operated through bogus/dummy bank accounts used for fund collection and business transactions. The agency has so far attached and seized assets worth around ₹344.15 crore in the case.