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Enforcement Directorate Freezes Rs 123 Crore in Crackdown on Chinese Betting Apps

ED conducts searches in Mumbai, Chennai, and Kochi, uncovering money laundering activities related to Chinese-controlled betting and loan apps.

By: Team Pardaphash  Pardaphash Group
Updated:
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Enforcement Directorate Freezes Rs 123 Crore in Crackdown on Chinese Betting Apps

In a significant move, the Enforcement Directorate (ED) has frozen bank deposits totaling Rs 123 crore as part of its crackdown on “Chinese-controlled” betting and loan apps. The agency conducted searches at 10 locations in Mumbai, Chennai, and Kochi under the Prevention of Money Laundering Act, targeting entities allegedly involved in defrauding numerous individuals.

Digital Devices, Incriminating Documents Seized in Nationwide Raids

The operations, carried out on February 23 and 24, focused on premises belonging to NIUM India Pvt Ltd and its directors in Mumbai, as well as Xoduz Solution Pvt Ltd, Vikrah Trading Enterprises Pvt Ltd, Tyrannus Technology Pvt Ltd, M/s Future Vision Media Solutions Pvt Ltd, M/s Aprikiwi Solution Pvt Ltd in Chennai, and Raphael James Rozario in Kochi.

According to the ED statement, the searches resulted in the recovery of digital devices, incriminating documents, multiple bank accounts linked to money laundering, and details of movable and immovable assets of the accused entities.

The primary objective of the searches was to trace and unearth the proceeds of crime related to illegal online loan, gambling, and betting apps, particularly through a network of mule accounts in Kerala, the ED explained. The investigation was initiated based on FIRs filed by Kerala and Haryana Police, alleging exploitation and cheating through these apps controlled by Chinese entities.

The ED revealed that the proceeds of crime were being aggregated and laundered through mule accounts in various banks in Kerala. Additionally, funds collected through multiple shell companies across states such as Chennai, Bengaluru, Delhi, and Mumbai were being remitted outside India via channels like cryptocurrency, under the guise of fake software imports from Singapore and Forex currency purchases.

numerous shell entities in India

The accused had reportedly established numerous shell entities in India, using them to transfer proceeds of crime to shell companies in Singapore. The Singapore entities would then issue fake invoices for software/services in the name of the Indian shell entities, with the proceeds of crime already aggregated. The forex settlement platform M/s NIUM Singapore Pte Ltd. played a crucial role in this process, facilitating the collection of money from Indian entities based on fake invoices and transferring it as outward remittances to M/s NIUM Singapore Pte Ltd.

The ED emphasized that further investigation is ongoing, as it works to unravel the complex web of money laundering and illicit activities carried out by the accused entities.

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