Shraddha Kapoor and Ranbir Kapoor are being questioned for allegedly promoting the app.
New Delhi:
Gold bars, jewelery and cash totaling Rs 417 crore is what the Enforcement Directorate recovered last month when they conducted searches at 39 locations linked to the Mahadev gambling app. The app made headlines last week when Bollywood actors Ranbir Kapoor and Shraddha Kapoor, who appeared in advertisements for the app, were summoned by the Enforcement Directorate for questioning.
The investigating agency has made four arrests in the case, while the two masterminds and promoters of the app are based in Dubai.
The Mahadev app only came under the crosshairs of investigative agencies after a Rs 200 crore wedding in the UAE in February, paid entirely in cash.
Here’s how the app managed to bypass regulations and flummox authorities to make a fortune:
Attract new customers
The Mahadev Online gambling app was operated by Saurabh Chandrakar and Ravi Uppal from Dubai. Both belong to Chhattisgarh’s Bhilai.
The company managed to attract new customers by regularly creating new websites and closed groups on chat apps. They often placed paid advertisements on social media apps and tried to get people to text their numbers to make a profit. ED said in its complaint that the numbers could only be reached through WhatsApp.
One of Mahadev’s customer service executives then guided the person to create a new user ID, after which he would be provided with two numbers. One was used to deposit money into their account and place bets, while the other was for contacting customer service and redeeming their accumulated points or money.
All accounts used to collect or disburse money were benami accounts opened fraudulently.
All bets and games organized by Mahadev would be manipulated in such a way that the company would not lose money. Most new users continued to fund their accounts after making initial profits, but in the long run a user would almost always suffer heavy losses.
Network of call centers
Not only were the company’s illegal bank accounts dispersed, but so were their call centers. Mahadev had opened hundreds of call centers in four countries – Malaysia, Thailand, India and the UAE – that would operate 24/7 to create additional apps and websites and communicate with customers.
ED’s investigation revealed that the gambling app would witness transactions of thousands of crores on a daily basis. The company was making a profit of Rs 200 crore per day, the research house claimed.
The belongings recovered by the ED during raids on Mahadev app properties.
Nexus of police, bureaucrats and politicians
The investigation revealed that the Mahadev Online Book App is managed from a central headquarters in the United Arab Emirates, officials said. It works by franchising “Panel/Branches” to their known associates with a profit ratio of 70-30, the agency said.
Large-scale hawala operations are being carried out to transfer betting proceeds to offshore accounts.
About thirty call centers were opened in major Indian cities, and these were handled by Anil Dammani and Sunil Dammani, two very close associates of Saurabh Chandrakar and Ravi Uppal. Both Dammani brothers have been arrested by the ED.
Police, politicians and bureaucrats were given a share in keeping this syndicate running.
One of Anil Dammani’s duties was to direct some of the money coming through Hawala to the police, politicians and bureaucrats who were on board. This ensured that the app did not come under the radar of the investigative services.
During interrogation, Anil Dammani said that he along with his brother had carried out illegal transactions worth Rs 60 to 65 crore in the last two years.
Bollywood connection
Ranbir Kapoor, Shraddha Kapoor, Kapil Sharma, Hina Khan and several other actors have been summoned for questioning by the Enforcement Directorate. The reason: They performed at the wedding in Dubai in February and were paid through Hawala transactions.
ED said 17 Bollywood celebrities were brought to Dubai on a chartered plane to perform at the wedding. They would all have received millions of rupees, but through hawala.
Ranbir Kapoor is also accused of promoting one of the apps run by the syndicate.
Authorities said the actors are being questioned to provide insight into the source of the money they received through the gambling app.
