The Enforcement Directorate (ED) on June 12 recovered cash, bank funds and several luxury watches among others to the tune of Rs 8 crore during a raid at multiple premises linked to Fairplay app. The platform was involved in illegal broadcasting of cricket/IPL matches and various online betting activities including results of Lok Sabha elections 2024.
The probe agency conducted raids at 19 places linked to the app across Mumbai and Pune under Prevention of Money Laundering Act (PMLA) 2002.
"During the search operations, various incriminating documents, digital devices, cash, bank funds, Demat account holdings and luxury watches to the tune of Rs 8 crore were seized/frozen," ED said in a statement.
The probe was initiated on the basis of an FIR registered by Nodal Cyber Police, Mumbai on the complaint of M/s Viacom18 Media Private Limited under various sections of IPC, 1860, Information Technology Act, 2000 and Copyright Act, 1957 against M/s Fairplay Sport LLC and others for causing loss of revenue of more than Rs 100 crore (proceeds of crime).
The ED investigation revealed that Faiplay made agreements through foreign-based entities in Dubai and Curacao with Indian agencies representing celebrities.
"It was found that no due diligence was performed by Indian agencies regarding Fairplay before executing the agreements for its promotion," the agency said.
According to the Enforcement Directorate, Fairplay collected funds through various shell bank accounts which in turn were layered through complex web of bank accounts of shell entities and were then accumulated in pharma companies involved in bogus billing.
"Investigation revealed that funds from these companies have been siphoned off to overseas shell entities based out of Hong Kong SAR, China and Dubai. More than 400 bank accounts of shell entities were found to be used for these purposes which are under examination along with trailing/utilisation of funds collected from the public by Fairplay," the agency added.
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