Overseas shell firms under ED scanner in probe against mobile apps

The ED's money laundering probe into apps like Fairplay reveals links to overseas shell firms and illegal cricket broadcasting, with ₹100 crore losses reported.

MUMBAI: The money laundering investigation by Enforcement Directorate (ED) against a few mobile applications, including Fairplay, has revealed the alleged utilisation of a few overseas shell firms based in Hong Kong and Dubai, whose accounts received funds collected from India. The mobile apps are under the ED’s scanner for their alleged involvement in illegal broadcasting of cricket matches in 2023 and online betting activities.

Overseas shell firms under ED scanner in probe against mobile apps

ED’s investigation revealed that Fairplay had allegedly made agreements through foreign entities based in Dubai and Curacao, with Indian agencies representing celebrities. The probe found that no due diligence was allegedly performed by such Indian agencies regarding Fairplay before executing the agreements for its promotion.

The probe also revealed that Fairplay had allegedly collected funds through various shell bank accounts that in turn were layered through a complex web of bank accounts of shell entities and were then accumulated in pharmaceutical firms involved in bogus billing. The probe further revealed that funds from such firms were siphoned off to overseas shell entities operating from Hong Kong, Dubai and United Arab Emirates. Over 400 bank accounts of shell entities were used for such purposes, along with utilisation of funds collected from the public by Fairplay and the others, ED sources said.

ED had initiated its investigation based on an April 2023 case registered by Maharashtra’s Nodal Cyber Police, Mumbai, against M/s. Fairplay Sport LLC and others, based on the complaint of M/s. Viacom18 Media Pvt Limited under various sections of the Indian Penal Code, the IT Act, and the Copyright Act. It was alleged that the accused entities had caused a loss of revenue worth ₹100 crore, which are the proceeds of crime in the case, to the complainant.