The Enforcement Directorate (ED) has stepped up its investigation into an alleged online gaming and betting fraud-linked money laundering case, seizing ₹30.3 lakh in cash and freezing more than 100 bank accounts. The agency has alleged that a complainant was defrauded of approximately ₹58.42 crore through allegedly manipulated online gaming platforms.
According to the ED, searches were conducted on August 18 under the Prevention of Money Laundering Act (PMLA), 2002, at 12 locations across Nagpur, Gondia and Ahmedabad. The premises searched were allegedly linked to the accused and their associates. The operation resulted in the seizure of financial records, digital devices and other material allegedly connected with illegal gaming operations and financial transactions.
₹30.3 Lakh Cash Seized, Over 100 Bank Accounts Frozen
The ED said ₹30.3 lakh in cash was seized during the searches. More than 100 bank accounts were also frozen. The agency suspects that these accounts were used to receive, transfer and layer the alleged proceeds of the fraud.
Mutual Funds and Shares valued at approximately ₹5 crore were also frozen. The agency further identified two bank lockers during the searches. Three luxury vehicles valued at around ₹1.7 crore were seized as part of the action.
Investigators also confiscated 11 mobile phones and one laptop. According to the ED, the devices may contain digital evidence relating to the alleged illegal gaming operations, communications and financial transactions.
Property Documents Worth ₹16.5 Crore Seized
The searches also led to the seizure of documents relating to immovable properties valued at approximately ₹16.5 crore. The agency is examining the ownership, acquisition and financial transactions associated with these properties.
The ED said the searches helped secure substantial financial and digital evidence concerning the alleged generation, concealment, possession, layering and utilisation of proceeds derived from illegal online gaming activities.
Investigators are now examining the relationship between the seized assets, bank accounts and the alleged gaming operations to establish the complete financial trail.
₹58.42 Crore Fraud Alleged Through Manipulated Gaming Platforms
The money laundering investigation originated from an FIR registered at the Cyber Crime Police Station in Nagpur City. The FIR invoked provisions of the Indian Penal Code, 1860, and the Information Technology Act, 2000.
According to the ED, the accused allegedly induced the complainant to invest large amounts of money in online gaming by promising high returns within a short period. The complainant was allegedly provided links to illegal gaming platforms and repeatedly encouraged to deposit additional funds despite suffering losses.
The investigation alleges that the gaming platforms were manipulated in a manner that prevented the complainant from securing winnings. Whenever the complainant allegedly approached a winning position, technical errors or glitches were used to prevent the winnings from being credited.
Through the alleged fraudulent mechanism, the complainant is estimated to have lost approximately ₹58.42 crore.
Hawala-Style Transactions and Mule Accounts Under Scanner
The ED has alleged that proceeds generated through the illegal gaming operations were collected through multiple channels. Some payments were allegedly made in cash through designated couriers, with hawala-style “token” currency notes being used for identification and reconciliation.
The agency also found that funds were transferred to “agent accounts” allegedly nominated by the accused. Multiple mule bank accounts held in different names were reportedly used to receive and layer the alleged proceeds.
According to the ED, analysis of the accounts revealed transactions involving several crores of rupees. Some funds were allegedly withdrawn in cash, while another portion was suspected to have been remitted abroad through purported import payments that the agency considers bogus.
ED Examines Complete Financial Trail
The ED is now examining the frozen bank accounts, securities, vehicles and property documents to establish their alleged links with the money laundering network. Investigators are tracing how the proceeds from the online gaming activities allegedly moved through different accounts, how they were layered and where the funds were ultimately utilised.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said manipulated gaming platforms and fraudulent high-return schemes often rely on building trust before inducing victims to deposit substantial amounts. According to him, criminals may then route the proceeds through multiple accounts to make the financial trail more complicated. He said analysis of digital evidence, banking transactions and beneficiary accounts can play a crucial role in identifying the wider network behind such frauds.
The ED investigation is continuing, with the agency examining additional financial transactions, digital evidence and possible links between the alleged online gaming operations and the assets identified during the searches.
