The Enforcement Directorate (ED) is currently investigating a money laundering case involving the betting application FairPlay, which is accused of illegally streaming IPL cricket matches. In its chargesheet, the ED has noted that four companies, including one that is listed on the stock exchange, were instrumental in facilitating over Rs 13,000 crore in international payments disguised as import transactions, ToI reported on April 27.
Additionally, the agency revealed that a payment gateway known as Betty Finserve processed transactions worth Rs 3,000 crore for FairPlay, earning a commission of Rs 30 crore, which has since been seized by the ED. The investigation is focused on understanding the involvement of these entities in the alleged financial misconduct.
According to the chargesheet, Krish Shah, the promoter of FairPlay, transferred 70% of his ownership of the app to Saurabh Chandrakar from the Mahadev Online Book group. Following this transaction, Shah transitioned his FairPlay business to a new application, while Chandrakar took charge of the payment gateway operations.
The case arises from a police FIR filed based on a complaint by Viacom18, which named eight companies, including FairPlay, alleging that various gaming and betting applications were illegally streaming IPL matches, infringing on their rights and resulting in financial losses.
The ED has recently submitted a chargesheet against 11 individuals connected to the case, which includes the detained brothers Chirag and Chintan Shah, the sought-after Krish Shah, and Siddhant Iyer, also known as Joe Paul, along with the FairPlay group and its associated companies.
It may be noted here that FairPlay doesn't have physical presence in India, with no registered entity to conduct its business operations in the country, nor has it acquired a GST number or PAN card for such activities.
The ED's investigation has revealed that several Indian celebrities were involved in promoting and endorsing the FairPlay app within the country. Notable figures included singer Badshah, actors Sanjay Dutt, Jacqueline Fernandez, Ranbir Kapoor, Varun Dhawan, and Shraddha Kapoor, as well as sports personalities such as Saina Nehwal, Mary Kom, Kiara Advani, Mithali Raj, and cricketers A B De Villiers and Graeme Smith. The chargesheet states that these celebrities had agreements with both foreign entities and Indian companies.
The ED noted that FairPlay employed a marketing strategy that included enlisting high-profile celebrities as brand ambassadors to foster an image of credibility and mainstream acceptance, which in turn attracted a significant user base. By operating from outside India, FairPlay created obstacles for regulatory authorities attempting to take action against the platform. A statement from one of the suspects indicated that his company received Rs 45 crore from FairPlay's payment partners, which was subsequently distributed to either celebrities or social media influencers.
The chargesheet detailed four companies—Flawless Pharma Pvt Ltd, Aaquries Global Industries Ltd, Remedium Lifecare Ltd, and MEDEC Medicare Ltd—through which Rs 4,000 crore was transferred abroad in a brief period. These funds were allegedly sent overseas under the pretense of illegal or fictitious goods imports, contributing to the total remitted amount of Rs 13,000 crore.
Betty Finserve, a payment gateway managed by Rahul Kumar Verma, served as a payout facilitator for FairPlay, enabling the transfer of funds to its clients, according to the ED's chargesheet. Truefund Innovation India acted as an illegal intermediary, managing the funds collected by FairPlay, as reported by the agency. In 2020, Krish Shah established Fanq Gaming in Mumbai to explore the online gaming sector in India. To circumvent the complex legal landscape surrounding online gaming and betting in India, he strategically moved operations offshore by setting up FairPlay in Curacao, while also forming additional entities in Dubai, Malta, and other regions, thus allowing FairPlay to operate from outside India.
The ED highlighted that Paul, a childhood friend of Krish Shah, plays a pivotal role in the financial operations of FairPlay. He is tasked with overseeing fund collection, managing financial matters, and handling the intricate accounting processes associated with FairPlay.
Paul was also involved in the creation and management of a network of dummy, mule, and shell bank accounts used to accumulate, layer, and funnel funds generated from online gaming and betting activities, ToI's report said.
Additionally, the agency revealed that a payment gateway known as Betty Finserve processed transactions worth Rs 3,000 crore for FairPlay, earning a commission of Rs 30 crore, which has since been seized by the ED. The investigation is focused on understanding the involvement of these entities in the alleged financial misconduct.
According to the chargesheet, Krish Shah, the promoter of FairPlay, transferred 70% of his ownership of the app to Saurabh Chandrakar from the Mahadev Online Book group. Following this transaction, Shah transitioned his FairPlay business to a new application, while Chandrakar took charge of the payment gateway operations.
The case arises from a police FIR filed based on a complaint by Viacom18, which named eight companies, including FairPlay, alleging that various gaming and betting applications were illegally streaming IPL matches, infringing on their rights and resulting in financial losses.
The ED has recently submitted a chargesheet against 11 individuals connected to the case, which includes the detained brothers Chirag and Chintan Shah, the sought-after Krish Shah, and Siddhant Iyer, also known as Joe Paul, along with the FairPlay group and its associated companies.
It may be noted here that FairPlay doesn't have physical presence in India, with no registered entity to conduct its business operations in the country, nor has it acquired a GST number or PAN card for such activities.
The ED's investigation has revealed that several Indian celebrities were involved in promoting and endorsing the FairPlay app within the country. Notable figures included singer Badshah, actors Sanjay Dutt, Jacqueline Fernandez, Ranbir Kapoor, Varun Dhawan, and Shraddha Kapoor, as well as sports personalities such as Saina Nehwal, Mary Kom, Kiara Advani, Mithali Raj, and cricketers A B De Villiers and Graeme Smith. The chargesheet states that these celebrities had agreements with both foreign entities and Indian companies.
The ED noted that FairPlay employed a marketing strategy that included enlisting high-profile celebrities as brand ambassadors to foster an image of credibility and mainstream acceptance, which in turn attracted a significant user base. By operating from outside India, FairPlay created obstacles for regulatory authorities attempting to take action against the platform. A statement from one of the suspects indicated that his company received Rs 45 crore from FairPlay's payment partners, which was subsequently distributed to either celebrities or social media influencers.
The chargesheet detailed four companies—Flawless Pharma Pvt Ltd, Aaquries Global Industries Ltd, Remedium Lifecare Ltd, and MEDEC Medicare Ltd—through which Rs 4,000 crore was transferred abroad in a brief period. These funds were allegedly sent overseas under the pretense of illegal or fictitious goods imports, contributing to the total remitted amount of Rs 13,000 crore.
Betty Finserve, a payment gateway managed by Rahul Kumar Verma, served as a payout facilitator for FairPlay, enabling the transfer of funds to its clients, according to the ED's chargesheet. Truefund Innovation India acted as an illegal intermediary, managing the funds collected by FairPlay, as reported by the agency. In 2020, Krish Shah established Fanq Gaming in Mumbai to explore the online gaming sector in India. To circumvent the complex legal landscape surrounding online gaming and betting in India, he strategically moved operations offshore by setting up FairPlay in Curacao, while also forming additional entities in Dubai, Malta, and other regions, thus allowing FairPlay to operate from outside India.
The ED highlighted that Paul, a childhood friend of Krish Shah, plays a pivotal role in the financial operations of FairPlay. He is tasked with overseeing fund collection, managing financial matters, and handling the intricate accounting processes associated with FairPlay.
Paul was also involved in the creation and management of a network of dummy, mule, and shell bank accounts used to accumulate, layer, and funnel funds generated from online gaming and betting activities, ToI's report said.
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