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Time of India
27-04-2025
- Business
- Time of India
Four firms implicated in Rs 13,000 cr laundering as ED untangles FairPlay betting app's many layers of deceit
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. #Pahalgam Terrorist Attack India stares at a 'water bomb' threat as it freezes Indus Treaty India readies short, mid & long-term Indus River plans Shehbaz Sharif calls India's stand "worn-out narrative" 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. Live Events 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.
Indian Express
27-04-2025
- Business
- Indian Express
FairPlay Money-laundering case: ED claims Rs 4,500 crore sent overseas using shell companies in the guise of bogus imports, exports
The Enforcement Directorate (ED) has claimed that Rs 4,500 crore were proceeds of crime of the online gaming and betting application Fairplay that has been alleged to be involved in money laundering. The ED recently filed its prosecution complaint (chargesheet) in the case against Fairplay, detailing how it allegedly ran a sophisticated network of shell entities, offshore entities, financial intermediaries and complex money-laundering operations. According to the chargesheet, money deposited by users of the app for online betting and gaming was parked into pharma shell companies before being transferred to overseas companies. The ED said this was done in the guise of bogus imports, fraudulent exports and overseas investments. Some of the money was also used to purchase movable and immovable properties in India and to invest in stock market. The Fairplay case emerged following a complaint from Viacom 18 Media Pvt Ltd, which alleged that Fairplay was illegally streaming and broadcasting Indian Premier League (IPL) cricket matches from 2022, thereby causing commercial losses to Viacom which had the rights for the broadcast and streaming. A request for signup by a user on the app would go through different agents in Dubai, with bogus accounts used eventually to transfer money. The ED has named Fairplay Sport and two of its companies registered in Dubai, Krish Shah, its founder, Siddhant Iyer alias Joe Paul, who handled the companies' finances, in the chargesheet. Both Shah and Paul are yet to be arrested and are believed to be in the UAE with lookout circulars issued against them. It has also named brothers Chintan and Chirag Shah, who formed Wohlig Transformation Pvt Ltd for technical and software infrastructure for the app. The chargesheet claims that apart from IPL and other cricket and sport tournaments, the app also had betting on the 2024 Lok Sabha elections in India. It claimed that the net profits of the companies during peak season like IPL or the cricket World Cup were Rs 45-55 crore per month, excluding marketing expenses. Most of the transactions by users, whose money was deposited through bogus accounts, were between April 2023 and May 2024. The Fairplay app had advertised about the streaming of IPL and also got celebrities including Bollywood actors, sports personalities as well as South African cricketers to endorse the app for popularity. The ED claimed that Krish decided to register the company overseas to evade the complexities of Indian law regarding online betting and gaming and to maintain obscurity over the ownership. The ED conducted searches at various locations linked to the accused and claimed that properties in the names of Krish's family members were also searched. One of his family member had been unable to explain the source of Rs 42 lakh cash found in a bank locker and 10 kgs of silver bars. The ED said Rs 111.59 crores have been seized by freezing bank accounts and properties worth Rs 232.65 crores have been identified. The ED said that while Fairplay was fully owned by Krish, in April 2023, he sold part of it to co-promoters of Mahadev betting app, another app under scanner for alleged illegal activities.
Time of India
26-04-2025
- Business
- Time of India
Operator planned to set up crypto exchange in Gujarat
Mumbai: The Dubai-based FairPlay operator intended to establish a cryptocurrency exchange in Gujarat but abandoned the plan after the government imposed tax regulations on crypto transactions two years ago. According to the ED chargesheet, FairPlay promoter Krish Shah accumulated illicit profits from online gaming through bitcoin transactions to avoid detection. He also provided cryptocurrency transfer services, which drew him towards the crypto business despite his lack of expertise. Shah aimed to expand FairPlay operations across multiple countries, with separate currencies for each territory after having his crypto exchange. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai In his statement to ED, arrested accused Chintan Shah disclosed their cryptocurrency and blockchain business aspirations, mentioning that Kaleido (a blockchain platform) planned to develop the INDT Wallet App for Krish Shah and offered assistance in creating unique cryptocurrencies. The chargesheet, citing Chintan's statement, revealed that Krish was pursuing crypto-related licences for the app whilst being uncertain about managing such projects due to their inexperience. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2025 Top Trending local enterprise accounting software [Click Here] Esseps Learn More Undo Krish Shah intended to establish his venture at Gift City Ahmedabad. "However, they abandoned this plan following the government's implementation of a 30% tax on cryptocurrency transactions in 2023." ED investigations, including mobile phone examinations, revealed Krish Shah's involvement in cryptocurrency operations to layer his illegal betting app earnings whilst pursuing his own crypto exchange. According to arrested accused Chirag Shah's statement, a WhatsApp group called Crypto Exchange IND was created to launch a new crypto exchange in India. The group comprised himself, his brother Chintan, Krish Shah and Siddhant lyer alias Joe Paul. Chirag informed ED officials that FairPlay aimed to create a regulated cryptocurrency wallet for the global market, enabling users to store cryptocurrency in hot and cold wallets, but the project stalled due to compliance and technical security challenges. Evidence from the WhatsApp group demonstrated that Siddhant lyer alias Joe Paul transferred USDT to Betfair (a listed betting company in London) to provide odds for online betting and gaming.
Time of India
26-04-2025
- Business
- Time of India
4 firms helped betting app send `13,000 cr abroad in guise of imports, say cops
Mumbai: The Enforcement Directorate (ED) probing the money laundering case against betting app FairPlay for illegal streaming of IPL cricket matches said in its chargesheet that four firms, including one registered on the stock exchange, facilitated over Rs 13,000 crore in payments abroad under the guise of import payments. The agency also said a payment gateway, Betty Finserve, processed Rs 3,000 crore in transactions for FairPlay, earning a commission of Rs 30 crore, which ED subsequently attached. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai ED is investigating these entities' role in the case. The chargesheet said FairPlay promoter Krish Shah sold 70% ownership rights of FairPlay to Saurabh Chandrakar of Mahadev Online Book group. Thereafter, Shah shifted his FairPlay business to the new app. Chandrakar managed the payment gateway of FairPlay. The case is based on a police FIR registered on a complaint of Viacom18 naming eight companies, including FairPlay, alleging that different gaming-betting apps were illegally streaming IPL matches for which it had all rights, thus causing losses. The Enforcement Directorate (ED) probing the money laundering case against the illegal betting app FairPlay for illegal streaming of IPL cricket matches recently filed a chargesheet against 11 accused in the case, including arrested brothers Chirag and Chintan Shah, key player in the FairPlay app case Krish Shah (who is wanted), Siddhant Iyer alias Joe Paul, and the FairPlay group along with associate companies. FairPlay has no legal presence in India, no entity registered to carry out such business activities in India, and neither obtained a GST number nor PAN card in this regard. The ED probe showed that numerous Indian celebrities endorsed and marketed the FairPlay app domestically. These personalities included "Badshah, singer, Sanjay Dutt, Jacqueline Fernandez, Ranbir Kapoor, Varun Dhawan, actor Shraddha Kapoor, Saina Nehwal (badminton), Mary Kom, Kiara Advani, Mithali Raj, A B De Villiers and Mr Graeme Smith," who established agreements with both overseas entities and Indian organisations, said the chargesheet. The ED said FairPlay adopted a marketing strategy wherein top-line celebrities were appointed as brand ambassadors to create a perception of legitimacy and mainstream acceptance, which attracted a large number of users. By operating from outside India, FairPlay made it challenging for regulators to take action against the platform. One of the suspects told the ED in his statement that his firm received Rs 45 crore from FairPlay payment partners, which were paid to either celebrities or social media influencers. In the chargesheet, the ED provided details of four companies through which Rs 4,000 crore was remitted abroad in a short span—Flawless Pharma Pvt Ltd, Aaquries Global Industries Ltd, and Remedium Lifecare Ltd, MEDEC Medicare Ltd. These funds were sent abroad under the guise of illegal/bogus imports of goods. The total amount remitted abroad through the four companies was Rs 13,000 crore. Beffy Finserve, a payment gateway owned and controlled by Rahul Kumar Verma, acted as a payout facilitator for FairPlay to credit funds to its clients, said the ED chargesheet. Truefund Innovation India, which was handling the funds collected by FairPlay, acted as an illegal intermediary between Beffy Finserve and FairPlay, said the ED. It added that Krish incorporated Fanq Gaming in Mumbai in 2020 to venture into the online gaming industry in India. To navigate the complexities of Indian law regarding online gaming and betting and to bypass the restrictive legal framework in India, he strategically shifted the operations offshore by incorporating FairPlay in Curacao. He established additional entities in Dubai, Malta, and other jurisdictions, allowing him to operate the FairPlay app from outside India. Paul, who is Krish's childhood friend, plays a critical role in the financial operations of FairPlay, the ED said. Paul is responsible for overseeing the collection of funds, managing the financials, and handling the intricate accounting processes of FairPlay. He was involved in setting up and managing a network of dummy/mule/shell bank accounts used to collect/layer/funnel funds generated from the online gaming and betting activities.
