ED Conducts Searches at 20 Premises in Online Betting, Cyber Fraud Case
The searches were conducted on October 13 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the ED said in a press release .
The investigation stems from two predicate offences linked to the online gaming and betting platforms ‘All Panel Exchange’ and ‘MGM91’, through which complainants were allegedly induced to deposit money and subsequently cheated.
According to the ED investigation, funds collected from victims were routed through multiple mule bank accounts and ultimately received in accounts of a Pune-based entity established by Ram U. Ramdhani. The entity’s founder, Edsom, had developed and operated an in-house payment intermediary platform called ‘iPaisa’, which onboarded more than 200 shell/front entities referred to internally as “merchants” on behalf of online gaming, betting and cyber fraud operators.
The ED said these operators and their agents, described as “Channel Partners/Carry Forward Agents”, allegedly facilitated the movement of funds through a network of mule accounts.
Investigators also identified persons operating online betting and gaming platforms from Dubai, along with cooperative banks allegedly used to collect and layer proceeds of crime.
The investigation has identified three principal routes allegedly used to siphon off proceeds generated through online betting and cyber fraud: remittances disguised as trade transactions through over-invoicing, cash withdrawals from mule accounts opened under the guise of APMC units, and conversion of funds into cryptocurrency for transfer outside India.
During the searches, officials recovered and seized documents, digital devices and other material evidence relating to the alleged laundering and diversion of proceeds of crime.
Multiple bank accounts linked to the entities and persons concerned have also been ordered frozen under the PMLA, 2002, the ED said.
The agency had earlier conducted searches at several locations in Pune, Mumbai and Bengaluru and arrested Ram U. Ramdhani, founder of Edsom Fintech Pvt. Ltd., who remains in judicial custody.
Further investigation is underway.
