The Enforcement Directorate (ED) has seized movable assets totaling Rs. 5.87 Crore, represented by funds held in the bank accounts of different individuals/entities, as part of a case linked to illicit online betting/gambling. This action has been carried out in accordance with the stipulations outlined in the Prevention of Money Laundering Act, 2002.
The ED investigation was in pursuant to the PMLA following the filing of a First Information Report (FIR) by the Bengaluru-based Vivek Nagar Police Station. The complaint was initiated based on information received from the Directorate General of Goods and Services Tax Intelligence (DGGI) office in Bengaluru, which raised concerns about the engagement of companies in activities such as online gambling, betting, and potentially illicit operations.
ED revealed that the individuals Shyamala N and Umar Farooq established various companies using the credentials of other individuals. The Companies’ HR manager illicitly acquired multiple SIM cards and linked them to bank accounts for conducting online transactions.
Also read: 28% GST on Online Gaming: An Overview of GST Council’s Bold Decision
Furthermore, it was discovered that a cluster of associated entities, including Rockstar Interactive, Indie World Studio, Falcon Entertainment Agencies, The Next Level Technology, Rift Gamer Technologies, Reality Code Technology, Tenes Solutions, Electronic Virtual Solutions, Zazago Systems, Zynga Interactive, Whale Bytes Technology, Iobitcode Interactive Agency, Oculus Valve Entertainment, and Nestra Web Solutions, were set up with the intent to defraud the public. These entities engaged in deceptive practices under the guise of betting and gambling through websites like bestartech, khelo24bet, and betinexchange.
The investigation also revealed that the individuals Shyamala N and Umar Farooq registered several companies using the identities of other individuals. The inquiry also alleged that the Human Resource (HR) manager of these companies unlawfully acquired multiple SIM cards and connected them to bank accounts for conducting online transactions. The investigation is still in progress.
Also read: Lok Sabha Passes CGST and IGST Amendment Bill Proposing 28% GST on Online Gaming
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