The Enforcement Directorate (ED) has filed a chargesheet against a major international syndicate involved in illegal “dabba trading” and online betting operations, exposing a network that stretched across Indore, Mumbai, Ahmedabad, Chennai and Dubai. The agency has uncovered illegal proceeds worth over ₹404 crore, generated through manipulated trading platforms, illegal betting websites and complex money-laundering channels.
The ED action stems from an FIR registered by the Indore Police, which was later linked to a case filed by the Mumbai Police under the Maharashtra Gambling Prohibition Act. Investigations revealed that the accused were running an organised racket under the guise of stock market trading while actually operating an illegal betting and money-laundering ecosystem.
What is Dabba Trading
“Dabba trading” refers to an illegal system where investors are made to believe they are trading in the stock market, but in reality, no trades are executed on recognised stock exchanges. Profits and losses are artificially generated using manipulated software, allowing operators to siphon off investors’ money without any regulatory oversight.
What the Investigation Revealed
According to the ED, the probe uncovered a technologically manipulated ecosystem involving:
- Fake and unregulated trading platforms
- Illegal online betting websites
- Multi-layered money laundering mechanisms
- Fund routing through Dubai-based entities
- Use of cryptocurrency to conceal proceeds
The agency stated that Vishal Agnihotri was the key operator of the syndicate, assisted by Tarun Shrivastava, who handled daily financial operations and mule accounts. The duo allegedly used shell entities and proxy bank accounts to route and disguise illegal proceeds.
Manipulated MT5 Servers Used
The ED further revealed that Srinivasan Ramasamy configured manipulated MT5 (MetaTrader 5) servers that falsely displayed profits or losses to investors. These platforms had no linkage with any recognised stock exchange, yet were designed to appear legitimate.
Victims were shown trading activity on platforms such as V Money and 8Stock Height, though no actual trades ever took place. The entire system was designed to simulate profits, lure investors into depositing more money, and eventually wipe out their funds.
Online Betting Network
As per the investigation, Dhaval Devraj Jain operated an illegal betting platform named LotusBook247, while Dharmesh Rajnikant Trivedi managed an offshore entity called iBull Capital, based in Dubai. Another accused, Nidhi Chandnani, allegedly facilitated fund movement and layering through Dubai-based shell entities.
These platforms operated using encrypted communication channels, anonymous accounts and cash-based settlements to evade detection by law enforcement agencies.
₹404 Crore Proceeds of Crime Identified
The Enforcement Directorate has so far identified:
- ₹404.46 crore as proceeds of crime
- ₹34.26 crore worth of assets attached
- ₹5.21 crore in cash seized
- 59.9 kg of silver bars
- 100 grams of gold
- Jewellery worth ₹1.94 crore
- Luxury watches worth ₹4.77 crore
- Cryptocurrency assets exceeding ₹41 lakh frozen
The seizures were made during multiple searches conducted across cities and offshore locations linked to the accused.
Public Advisory Issued by ED
The ED has issued a strong advisory urging citizens to remain cautious while investing. It warned that:
- Only SEBI-registered platforms should be used for trading
- Apps operating on private or unverified MT5 servers are often manipulated
- Individuals should never allow others to use their bank accounts
- Mule account holders are liable under the Prevention of Money Laundering Act (PMLA)
- Any suspicious activity should be immediately reported to authorities
The agency cautioned that illegal trading and betting platforms not only cause financial losses but also pose a serious threat to India’s financial system and economic security.
Crackdown to Continue
Officials said the investigation is ongoing and more arrests and asset attachments are likely as the ED traces additional links and beneficiaries of the racket.
The case highlights the growing menace of digital financial fraud, dabba trading and illegal online betting, prompting central agencies to intensify surveillance and enforcement against organised cyber-financial crimes operating across borders.
