Betting Endorsement Backfires: ED Freezes Over Rs. 11 Crore in Assets of Raina and Dhawan
The ED's headquarters office initiated the attachment as part of a money laundering investigation into 1xBet, which is accused of operating an illegal betting syndicate in India.
Former Indian cricket players Suresh Raina and Shikhar Dhawan's moveable and immovable assets worth Rs. 11.14 crore have been temporarily seized by the Enforcement Directorate (ED). Their suspected support of the contentious online betting site 1xBet is the reason for the action, which was taken under the Prevention of Money Laundering Act (PMLA), 2002. The attachment includes mutual fund investments worth Rs. 6.64 Crore held in the name of Suresh Raina and an immovable property valued at Rs. 4.5 Crore held in the name of Shikhar Dhawan.
The ED's headquarters office initiated the attachment as part of a money laundering investigation into 1xBet, which is accused of operating an illegal betting syndicate in India. The assets attached are believed to be proceeds of crime, which the cricketers received for their promotional association with the platform.
The ED's action, executed from its headquarters, is based on the premise that the funds paid to the cricketers were "proceeds of crime" generated by 1xBet's unlawful betting and gambling activities. Under the stringent provisions of the PMLA, 2002, any property derived from criminal activity can be attached by the agency, even if it has passed through several hands.
1xBet, though operating internationally, has faced numerous bans and restrictions in several countries, including India, for promoting gambling. The ED's investigation aims to dismantle the financial network of the platform, which allegedly used a complex web of shell companies and intermediary accounts to launder its massive earnings.
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High-profile advertising campaigns for 1xBet included Suresh Raina and Shikhar Dhawan, who are highly popular and regarded as role models. The attachment order issued by the ED implies that the agency is holding the cricket players responsible for obtaining money that was essentially the result of an illicit activity. A combination of immovable assets, like real estate, and mobile properties, such bank deposits, are included in the attached assets.
This case is a crucial wake-up call for India's multibillion-dollar celebrity endorsement market. It emphasizes how public personalities are increasingly obligated by law and ethics to perform extensive due diligence before partnering with a business. Legal experts advise against using ignorance of a company's illegal activities as a defense, particularly in industries like online gambling and betting that operate in a gray area of the law.
The first essential stage in the legal process is the provisional attachment. The case will now go through the legal system, where the ultimate fate of the assets will be determined, after the ED files a prosecution complaint. With everyone watching Raina and Dhawan's response and the precedent this high-profile case will establish for future celebrity-brand collaborations, the upcoming weeks will be significant.
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