The Enforcement Directorate has carried out searches across 20 locations in Mumbai, Pune, Mehsana, Surat, and Hyderabad as part of an expanding money laundering investigation into alleged fraud linked to online betting platforms All Panel Exchange and MGM91. Operating under the Prevention of Money Laundering Act, the agency’s Mumbai zonal unit initiated the action following two criminal complaints where users were allegedly induced to deposit funds on these betting portals and subsequently defrauded. Investigators are now scrutinising an intricate financial network involving over 200 shell entities and mule accounts, through which deposits were systematically layered, converted into cryptocurrency, and moved overseas.
Payment Gateway Architecture Under Scrutiny
Central to the investigation is Pune-based Edsom Fintech Private Limited, established by Ram U Ramdhani, who was previously arrested in connection with the inquiry. Agency sources revealed that the firm developed an in-house payment intermediary platform called iPaisa, which investigators suspect served as the core infrastructure for processing transactions tied to the illegal betting network. Through iPaisa, the fintech firm allegedly onboarded more than 200 front companies classified internally as merchants.
These merchant entities allegedly coordinated transactions for betting platform operators and intermediaries described as channel partners or carry-and-forward agents. By funnelling deposits through multiple corporate layers and intermediary accounts, the network obscured the true origins and ultimate destinations of the funds. The agency is now assessing the specific responsibilities of individuals managing the technical platforms, financial conduits, and illicit revenue streams.
Dubai Direction and Scrutiny of Cooperative Banks
Investigators have gathered indications that key operatives directing the betting platforms were managing operations remotely from Dubai. The agency is examining these cross-border communication channels to determine how operational directives were issued and financial flows coordinated across Indian cities. Officials are also assessing whether the underlying companies possessed genuine commercial functions or were established strictly to conceal fund movements.
Specific cooperative banks have simultaneously come under review for allegedly providing the banking infrastructure required to collect and layer the illicit deposits. Investigators are auditing relevant transaction histories to verify whether banking channels facilitated the dispersion of funds through multiple accounts. The agency suspects this institutional setup allowed the syndicate to rapidly distribute deposits before compliance systems could identify suspicious activity.
Disguised Remittances, Crypto Conversions, and Account Freezes
The probe indicates that the fraudulent proceeds were transferred outside India through multiple channels. One primary avenue involved trade-based money laundering, where remittances were disguised as legitimate import payments supported by over-invoicing. Furthermore, investigators are scrutinising large cash withdrawals from mule accounts registered under the names of Agricultural Produce Market Committee units, which are suspected of being used to siphon deposited cash.
Substantial amounts were also allegedly converted into cryptocurrency prior to being transferred abroad. To trace these assets, investigators are synthesising corporate records, seized digital evidence, and cross-border crypto transaction logs. During the latest search operations, officials seized incriminating records and hardware while freezing numerous bank accounts linked to the suspect firms to prevent the flight of capital.
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