Breaking: ED Raids 25 Locations Linked to Offshore Gaming

₹4,000 Crore Siphoned Abroad, Authorities Say

The Enforcement Directorate (ED) announced in a press release on May 24 that it had conducted search and seizure operations at 25 locations in 5 states directed against offshore gaming companies and online casino and betting platforms operating in India. Read more: ED raids 25 locations.

The case is for alleged violations of the Foreign Exchange Management Act, 1999 (FEMA), the siphoning of roughly ₹4,000 crores abroad through shell firms, and the misdeclaration of circumstances.

ED Raids 25 Locations

“These online gaming companies/websites are registered in small island countries like Curacao, Malta, and Cyprus. However, all of them are linked to Indian Bank Accounts opened in the name of proxy persons who have no links with online gaming activity,” the press release clarifies.

“The amount so collected from general public through gaming websites is then routed through multiple bank accounts and finally remitted out of India by mis-declaring the purpose of remittances against import of services / goods.”

ED carried out the raids on Monday and Tuesday, May 22 and 23, in Delhi (11 locations). As well as Gujarat (7) and Maharashtra (4). Also Madhya Pradesh (2), and Andhra Pradesh (1). Including premised linked to Hawala operators.

During the raids cash worth ₹19.55 lakh and $2,695, Aadhar and PAN cards, documents, and electronic devices were seized. 55 bank accounts linked to the illicit activities were frozen.

According to ED, the perpetrators conducted their operations from remote computers and servers. To avoid detection, They used remote access apps like Anydesk and Team Viewer.

Recent efforts by the Ministry of Electronics and IT (MeitY) aim to introduce central-level regulation for online gaming in India. These efforts may soon address the problem at its root. They could make real money gaming occur on India-registered platforms. This change may relieve the ED from some of its troubles.