Latest news with #ChiragShah
Time of India
20-05-2025
- Business
- Time of India
Laundering via betting app: Bail for 2; ‘role likely limited to software devpt, IT support'
Mumbai: Observing that prima facie, there are reasonable grounds to believe that they are not guilty and that their role was limited to software development and IT support for the betting-gaming Fairplay app , a special PMLA court on Tuesday granted bail to two brothers arrested in Feb in the Rs 4,500-crore money laundering case pertaining to the app. It said gaming and betting are not scheduled offences under PMLA. The judge said there was no complaint that the two, Chirag Shah (36) and Chintan Shah (34), cheated anyone. "As such, the amount generated by betting and gaming only cannot be taken as proceeds of crime... The amount credited to the accounts of the company of the accused are legitimate dues received... for the services provided by them," said special judge A C Daga. The judge rejected the argument that IT professionals should know the clients' source of funds, saying such a requirement would bring commercial transactions to a standstill as there is no mechanism for this. "There is nothing on record to show the accused were part of cheating. If [they knew] that Fairplay and its directors cheated the public at large and still continued to contribute and accept the amount, then it could have been said they assisted in the concealment and integration of the proceeds of crime, but that is not [ED's] case," the judge said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo The ED recently filed a chargesheet against 11 accused, including the Shahs, key player Krish Shah who is absconding, Siddhant Iyer, and Fairplay group, along with associate companies. Fairplay has no legal presence in India, and no entity registered to carry out such business activities in India. It has obtained neither a GST number nor a PAN card in this regard. ED said the platform was engaged in unauthorised broadcasting, which has been settled, but that does not mean the crime never occurred and facilitated illegal betting operations, including those related to IPL and the 2024 LS polls. Senior counsel Pranav Badeka and advocate Gaurav Parkar, who represented the Shahs, said their company, Wohlig Transformation, only provided software development and IT support "at arm's length", received Rs 2.4 crore for it, and paid tax on it. The judge found the brothers' statements given in custody and their WhatsApp chats to be insufficient to establish a direct involvement in cheating or their knowledge of the proceeds of crime.
Indian Express
20-05-2025
- Business
- Indian Express
‘How can tech developers know payment fund source?': Court grants bail to techies in Fairplay betting app case
A special court on Tuesday granted bail to tech developers Chirag Shah and Chintan Shah — who were arrested in the Fairplay online betting app case — while noting whether an IT professional providing services for software development was required to know the source of funds of a person who has directed them to develop an application. Chirag Shah and Chintan Shah were arrested for providing software and technical infrastructure for the app. The court also observed that all business transactions would come to a standstill as there was no mechanism to clarify the source of the income from which the person giving orders and obtaining services is paying the amount. The Enforcement Directorate (ED) had last month filed a prosecution complaint (chargesheet) against Fairplay Sport and two of its companies, its founder, Krish Shah, and others including brothers Chirag and Chintan, who formed Wohlig Transformation Pvt Ltd for software services to the app. The court said that the role of the two brothers was limited to the extent of developing software and providing IT support and they had received legitimate dues for their services. 'IT professional who is providing services regarding software development… whether is required to know the source of funds of the persons (who) have directed them to develop the app. In case, this question is answered in affirmative, then in the commercial world, clearly all the business transactions will come to standstill as there is no mechanism to clarify from which source the person who is giving orders and obtaining services is paying the amount,' special judge A C Daga said. The ED had alleged that Fairplay lured individuals into betting schemes including on the Indian Premier League and the Lok Sabha elections 2024, promising them returns and wins. However, the platform deliberately manipulated odds and routed the money through a complex web of shell companies to conceal the origins of the funds for their personal gain. The Shah brothers sought bail stating that their company provided services to Fairplay and received Rs 2.4 crore for it, on which they duly paid tax and had therefore no connection with the allegations of money laundering. The court said that the transaction between Fairplay and the Shah brothers' company are not fake as they are seen to be legitimate from bank to bank. It said that the brothers played a significant role in development and technological operations of Fairplay's platform, including monitoring its website traffic and user engagement. When the ED had claimed that they were aware of the cheating, the court said prima facie evidence showed they were aware Fairplay was allegedly indulging in online betting and that this was not a scheduled offence under the Prevention of Money Laundering Act. The court also said that while the main FIRs probed initially were quashed by the Bombay High Court in February, others filed later did not name the Shah brothers as accused. Other accused persons, including Krish Shah, are named as absconding accused.
&w=3840&q=100)
First Post
26-04-2025
- Entertainment
- First Post
IPL illegal streaming scam: How celebrities like Ranbir Kapoor, Sanjay Dutt helped boost this fraud
The ED has filed a chargesheet against 11 people for illegally streaming IPL matches on Fairplay website. Celebrities and sports stars promoted the platform, misleading the public and causing massive financial losses to broadcasters. read more The Enforcement Directorate (ED) has filed a chargesheet against 11 people, including Chirag Shah and Chintan Shah, for illegally streaming Indian Premier League (IPL) matches on the Fairplay website in 2023. The case started after Mumbai Police's cyber cell received a complaint from Viacom18 Media Pvt Ltd, the company that owns exclusive IPL digital broadcasting rights. According to the ED, Fairplay's illegal streaming caused huge financial losses to Viacom18. The total amount of money involved is estimated to be more than Rs 100 crore. STORY CONTINUES BELOW THIS AD Celebrities and sports stars promoted Fairplay The chargesheet said that Fairplay made several big Indian celebrities and sports stars promote the platform. Names like Ranbir Kapoor, Sanjay Dutt, Jacqueline Fernandez, Varun Dhawan, Shraddha Kapoor, Kiara Advani, and sports legends like Saina Nehwal, Mary Kom, Mithali Raj, AB de Villiers, and Graeme Smith were linked to Fairplay promotions. Famous rapper Badshah also endorsed the app. The ED said these endorsements were done through deals with Indian and overseas companies. By using so many celebrities, Fairplay made people believe that it was a trusted and official platform, which helped them attract a lot of users. 'Fairplay adopted a marketing strategy wherein top-line celebrities were appointed as brand ambassadors, it created a perception of legitimacy and mainstream acceptance, which attracted a large number of users,' the chargesheet said. Operation controlled from Dubai The ED investigation revealed that the entire Fairplay operation was managed from Dubai by Krish Laxmichand Shah with help from Siddhant Iyer, also known as Joe Paul, who handled the money. Both of them are now absconding and believed to be living in Dubai. Several offshore companies were used to hide who really owned Fairplay. These companies were registered in places like Curacao, Dubai, and Malta. Misleading ads and betting across sports Fairplay ran massive digital marketing campaigns on YouTube, Facebook, Instagram, and other platforms. They used social media influencers and affiliate marketers to reach young people. The platform falsely advertised itself as a place where users could 'Watch IPL for free,' even though they had no official rights to do so. Besides IPL streaming, Fairplay was also involved in illegal betting on other sports like tennis, football, badminton, and even on the 2024 Lok Sabha elections, the ED said. According to the ED, more than Rs 4,000 crore made from these illegal activities was sent abroad under the fake excuse of imports. The money was moved through multiple bank accounts and some of it was brought back into India. The accused reportedly used the money to buy properties and other assets. STORY CONTINUES BELOW THIS AD
&w=3840&q=100)
Business Standard
26-04-2025
- Entertainment
- Business Standard
IPL 2025: ED files chargesheet against 11 people for illegal streaming
The Enforcement Directorate (ED) has filed a chargesheet against 11 accused, including Chirag Shah and Chintan Shah, in connection with the Fairplay website illegally streaming Indian Premier League (IPL) matches in 2023. The case stems from an FIR lodged by Mumbai Police's cyber cell following a complaint by Viacom18 Media Pvt Ltd, which holds the exclusive broadcast rights for the IPL. The ED said that the illegal streaming by Fairplay caused huge financial losses to Viacom18. Nine other FIRs from across India have also been merged with this investigation, with the total proceeds of crime estimated to exceed Rs 100 crore. According to the chargesheet, Fairplay appointed several top Indian celebrities, including Ranbir Kapoor, Sanjay Dutt, Jacqueline Fernandez, Varun Dhawan, Shraddha Kapoor, Kiara Advani, and sports personalities such as Saina Nehwal, Mary Kom, Mithali Raj, AB de Villiers, and Graeme Smith, to promote the platform. Popular singer Badshah also endorsed the app. These endorsements, facilitated through agreements with overseas and Indian firms, helped create an illusion of credibility and attracted a large user base. How the operation was run The ED revealed that the Fairplay operation was controlled from Dubai by Krish Laxmichand Shah, with the help of Siddhant Iyer (also known as Joe Paul), who handled the financial aspects. Both Shah and Iyer are currently absconding and are believed to be residing in Dubai. Multiple offshore companies, including Play Ventures NV, Dutch Antilles Management NV (both registered in Curacao), Fair Play Sport LLC, Fairplay Management DMCC (both registered in Dubai), and Play Ventures Holding Limited (registered in Malta), were used to obscure Fairplay's true ownership. Strategy to lure users Fairplay launched aggressive digital marketing campaigns across platforms like YouTube, Facebook, Instagram, and others. It also employed social media influencers and affiliate marketers to target younger audiences. The platform promoted itself as a destination to 'Watch IPL for free,' misleading the public into believing it had official broadcasting rights. In addition to IPL matches, Fairplay was found to be involved in online betting across various sports like tennis, soccer, badminton, and even the 2024 Lok Sabha elections. Financial trail and laundering allegations The ED stated that proceeds of crime exceeding Rs 4,000 crore were transferred abroad under the guise of bogus imports. These funds were routed through multiple bank accounts and partially brought back into India. The money was allegedly used to acquire immovable and movable assets by the accused and associated entities. Legal action ahead Special PMLA judge AC Daga has taken cognisance of the chargesheet. The ED's investigation highlights the challenges faced by Indian authorities in acting against platforms operated from outside India, especially when multiple offshore entities are created to shield the real operators. (With PTI Inputs)
