ED raids 25 locations in probe against foreign registered online gaming companies
1 min read . Updated: 24 May 2023, 09:14 PM IST
PremiumThe raids were carried out in connection with a probe against foreign registered online gaming companies/websites operating in India
The Enforcement Directorate (ED) on Wednesday carried out raids under Foreign Exchange Management Act (FEMA) at 25 locations across Delhi, Gujarat, Maharashtra, Madhya Pradesh and Andhra Pradesh. The raids were carried out in connection with a probe against foreign registered online gaming companies/websites operating in India.
In a statement, the Directorate of Enforcement said that it has carried out “search and seizure operations" in relation to an investigation against foreign registered online gaming companies/websites that have been operating in India.
“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 ED said in a statement.
The law enforcement agency said the amount which was collected from the general public through gaming websites was later “routed through multiple bank accounts and finally remitted out of India by mis-declaring the purpose of remittances against import of services/goods".
The ED said remittances out of the income from racing/riding etc., or any other hobby are not allowed under the provisions of FEMA, 1999.
The law enforcement agency, hence, conducted the raids at premises linked to several Hawala operators including that of Ashish Kakkar, Neeraj Bedi, Arjun Ashwinbhai Adhikari, Abhijeet Khot and the persons/entities associated with them.
The ED has also seized several incriminating documents and electronic evidence. It said the accused have opened hundreds of companies and sent remittances to the tune of ₹4,000 crore in guise of “payments for import of goods and services".
“Several PAN cards, Aadhar cards used for creating such firms, mobiles used for operating bank accounts of these firms and office stamps were also found and seized," the ED said.