ED seizes Rs 30.30 lakh, luxury cars in Rs 58.42 crore gaming fraud probe

NAGPUR: The stakes have been raised in an alleged online gaming fraud case, with the Directorate of Enforcement (ED) seizing Rs 30.30 lakh in cash and freezing financial assets worth around Rs 5 crore during searches linked to accused Anant Navratran Jain, also known as Sontu Jain.

The ED’s Nagpur sub-zonal office conducted searches on August 18 at 12 premises across Nagpur, Gondia and Ahmedabad under the Prevention of Money Laundering Act, 2002. The action forms part of an ongoing money-laundering investigation into an alleged online gaming and betting fraud involving manipulated gaming platforms.

The agency said the case originated from an FIR registered by the Cyber Crime Police Station in Nagpur City against Jain and others under various provisions of the Indian Penal Code and Information Technology Act.

According to the ED’s investigation, Jain allegedly persuaded a complainant to invest substantial sums in online gaming by promising high returns within a short period. The complainant was allegedly directed to platforms including Diamondexch, Indianexch, Lotusbook and World777.

The agency alleged that the platforms were manipulated so that when the complainant approached a winning position, technical errors or glitches would occur, preventing the winnings from being secured.

The alleged fraud resulted in losses of approximately Rs 58.42 crore for the complainant, according to the ED.

The investigation has also traced how the alleged proceeds were collected and moved.

According to the ED, payments were made through multiple channels, including cash delivered through designated couriers, bank transfers to accounts nominated by Jain and a hawala-style system involving “token” currency notes used to identify and reconcile payments.

The agency said several mule bank accounts held in the names of different individuals and entities were allegedly used to receive, layer and launder the proceeds of crime.

Analysis of these accounts reportedly uncovered transactions running into several crores of rupees. The funds were allegedly either withdrawn in cash or sent overseas as purported import payments.

The August 18 searches resulted in the seizure of Rs 30.30 lakh in cash, while more than 100 bank accounts, mutual funds and shares with an aggregate value or balance of approximately Rs 5 crore were frozen.

The agency also seized two bank lockers and three luxury vehicles valued at around Rs 1.70 crore.

Digital evidence was another focus of the operation, with 11 mobile phones and one laptop seized for examination. The devices allegedly contain information linked to the online gaming operations and related financial transactions.

In addition, the ED seized documents relating to immovable properties valued at approximately Rs 16.50 crore.

The agency said the searches have helped secure financial and digital evidence concerning the alleged generation, concealment, possession, layering and use of proceeds of crime from the illegal online gaming operation.

The investigation remains underway, with the ED examining the wider financial trail and the alleged network through which the proceeds were collected and moved.