The Enforcement Directorate (ED) has attached assets worth Rs 11.14 crore belonging to former cricketers Shikhar Dhawan and Suresh Raina. This action is part
of a money-laundering investigation linked to an alleged illegal betting site involving over Rs 1,000 crore.
A provisional order under the Prevention of Money Laundering Act (PMLA) was issued to attach Dhawan's commercial land in Delhi, valued at Rs 4.5 crore, and Raina's mutual fund worth Rs 6.64 crore.
The ED claims that the former cricketers knowingly entered into endorsement deals with foreign entities to promote 1xBet and its surrogates. These endorsements were allegedly paid for through foreign entities to hide the illicit origin of funds linked to illegal betting activities. The agency considers these assets as proceeds of crime from illegal betting.
Illegal Betting Site Investigation
The ED's investigation into 1xBet and its surrogate brand, 1xBat, began based on multiple police FIRs. The agency alleges that 1xBat was involved in promoting and facilitating illegal online betting and gambling operations across India. Registered in Curacao, 1xBet is described as a globally recognised bookmaker with 18 years of experience in the industry.
According to the ED, 1xBet operated in India without authorisation, using surrogate branding and advertisements to target Indian users through social media, online videos, and print media. Payments for endorsements were structured through layered transactions using foreign intermediaries to disguise the illegal source of funds.
Financial Transactions and Legal Implications
The probe revealed that 1xBet facilitated betting and gambling for Indian users by collecting money through various mule accounts. The ED detected 6,000 mule bank accounts used for illicit transactions and searched four payment gateways routing betting funds. Additionally, they identified 60 bank accounts linked to these platforms holding deposits exceeding Rs 4 crore.
The ED cautioned against online betting and gambling, warning that anyone knowingly assisting or allowing their account for such activities may face prosecution under the PMLA. This law provides for imprisonment up to seven years and attachment of assets derived from illegal transactions.
Impact on Individuals and Industry
Besides Dhawan and Raina, the ED has questioned other sporting icons like Yuvraj Singh and Robin Uthappa, as well as actors Sonu Sood, Urvashi Rautela (the Indian brand ambassador for 1xBet), Mimi Chakraborty (a former Trinamool Congress MP), and Bengali actor Ankush Hazra. The Centre recently enacted a law banning real-money online gaming in India.
Market analysis firms estimated that before the government ban, around 22 crore Indian users engaged with various online betting apps, with about half being regular users. The ED emphasises that illegal betting not only causes economic harm but also facilitates money laundering and financing of unlawful activities.
Dhawan announced his retirement from all forms of cricket in August, while Raina retired in 2020. There have been no immediate comments from either cricketer regarding the ED's actions. The order can be appealed before the Adjudicating Authority of the PMLA and other legal forums.
With inputs from PTI
