Mumbai Zonal Office: The Directorate of Enforcement’s (ED) Mumbai Zonal Office conducted searches at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, Daman and Uttar Pradesh on Tuesday, under the Prevention of Money Laundering Act (PMLA), in connection with an ongoing probe into the Cyprus-based illegal online betting platform Parimatch.During the raids, the agency seized movable assets worth around Rs 1.56 crore, including cash amounting to nearly Rs 1.2 crore. The ED also froze approximately Rs 3.8 crore lying in various bank accounts. Several incriminating documents and digital devices were recovered during the search operations.
The ED initiated the investigation on the basis of an FIR registered by the Cyber Police Station, Mumbai, against Parimatch.com for allegedly duping users through online betting operations.
According to investigators, the platform lured investors with promises of high returns and is suspected to have generated more than Rs 3,000 crore in a year.
The investigation has revealed that Parimatch and its associates allegedly operated through a complex network of mule accounts, payment intermediaries, and financial inclusion channels to collect, layer and transfer user funds.
Officials said that in several instances, user withdrawals were processed without any direct outward payment from accounts controlled by the platform. Instead, deposits made by other users were routed directly into the withdrawing users’ bank accounts or UPI IDs in multiple tranches to conceal the money trail and avoid direct payment linkage.
Investigators further found that user deposits and withdrawals were routed through multiple current accounts opened in the names of software, fintech, and technology-related entities, many of which were engaged in legitimate business activities.
These accounts were allegedly used to collect user deposits and route payouts under the guise of vendor payments, business transactions and payment gateway services.
The ED also uncovered the alleged misuse of Banking Correspondent (BC) networks, mobile money transfer agents, Grahak Seva Kendras, Cash Management Services (CMS), local kirana stores, and retail outlets for processing payouts and movement of funds linked to the platform.
According to the probe, user funds were routed through retailers and Grahak Seva Kendras operating under BC networks. The funds were first transferred to retailers, who then passed them to BC agents. The BCs subsequently recharged retailer wallets, which were later used to make payouts to Parimatch users, thereby masking the actual source and trail of funds.
The investigation further revealed that certain agents allegedly diverted cash received through CMS channels and adjusted it against RTGS transfers sourced from deposits made by Parimatch users. The cash was then allegedly transferred outside India through hawala channels.
The ED said Parimatch aggressively promoted its betting platform through surrogate advertisements under the names “Parimatch Sports” and “Parimatch News”. Unlike several other betting platforms, Parimatch allegedly adopted a hyperlocal marketing strategy by sponsoring teams in local cricket leagues across more than 15 states, apart from hockey and football tournaments.
The ED said it has so far frozen assets worth Rs 112 crore in the case. Further investigation is underway.
Article Source: IANS