Mahadev betting scam: $67.33 million in assets seized in fresh raids
Law enforcement and economic intelligence agency of the Government of India, Enforcement Directorate (ED) has seized securities, bonds, and demat accounts worth ₹573 crore ($67.33 million) following fresh raids in connection with the Mahadev Online Betting App-linked money laundering case. The federal agency conducted these searches on 16 April across multiple cities, intensifying its probe into the illegal betting network.
Raids across cities
The ED carried out searches at various locations in Delhi, Mumbai, Indore, Ahmedabad, Chandigarh, Chennai, and Sambalpur in Odisha. During these operations, officials seized cash worth ₹3.29 crore and confiscated electronic records and documents.
Betting profits invested in stock market
According to the ED, proceeds from the illegal betting operations were moved outside India and later brought back as investments in the Indian stock market. These transactions were carried out under the guise of foreign portfolio investments (FPIs), using complex layers of shell companies and benami accounts.
The investigation revealed that tainted money was introduced into listed companies to manipulate the stock prices of small and medium-sized enterprises (SMEs). This artificial fluctuation was allegedly intended to deceive common investors and inflate company valuations.
Shell companies and stock brokers under scanner
The ED found that the promoters of certain listed entities collaborated with accused individuals to deploy illicit funds. They did this through preferential issue of shares, sale of promoter-held shares, and issue of share warrants. These activities were facilitated by agents and stock brokers, some of whom were also targeted during the raids.
Several listed companies were allegedly used to layer the investments and conceal the original source of funds. The agency is now working to uncover the full modus operandi of the stock price manipulation and identify the network of middlemen involved.
Background of the case
The Mahadev betting app case first made headlines when the ED linked it to high-ranking politicians and bureaucrats from Chhattisgarh. The main promoters of the app, Sourabh Chandrakar and Ravi Uppal, also hail from the state. The ED has conducted multiple raids in this case over the past few years.
So far, the agency has arrested 13 individuals and filed five charge sheets naming a total of 74 accused. Properties worth ₹3,002 crore have been attached, frozen, or seized. The projected proceeds of crime in this case stand at around ₹6,000 crore.
Complex web of illegal activities
According to the ED, the Mahadev Online Betting App acted as an umbrella platform enabling illegal betting websites to register new users, create fake user IDs, and launder large sums of money. The app reportedly operated through a wide network of benami bank accounts and shell entities to bypass legal checks.
The agency’s investigation is ongoing, with efforts focused on tracing the entire chain of transactions and the people behind them.
