ED raids firms running Chinese betting apps, freezes Rs 47 cr in 4 accounts

Enforcement Directorate

The Enforcement Directorate has frozen four HSBC bank accounts containing Rs 46.96 crore after it raided multiple premises of companies involved in running online Chinese betting apps, according to an official statement.

It said the searches were carried out at 15 locations in Delhi, Gurgaon, Mumbai and Pune on Friday under various sections of the Prevention of Money Laundering Act (PMLA).

"Searches were conducted on the registered offices of the companies, their directors and chartered accountants involved in illegally running online betting apps from websites which are hosted from outside India," the federal probe agency said in the statement on Saturday.

"During the course of search, ED has seized 17 hard disks, five laptops, phones, crucial incriminating documents and has also frozen Rs 46.96 crore held in 4 HSBC Bank accounts," it said.

The money laundering case is based on an FIR filed by the Telangana Police against the accused early this year, it added.

According to the statement, the probe found out that "with the help of some Indian chartered accountants, some Chinese nationals floated multiple Indian companies."

"Initially dummy Indian directors were used to incorporate the companies and after some time Chinese nationals travelled to India and took directorship in these companies," it said.

"Some locals were hired and used to open bank accounts with HSBC Bank and open trade accounts with online wallets namely Paytm, Cashfree, Razorpay, etc." the ED said.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel