The Enforcement Directorate (ED) on Wednesday said that they have started search and seizure operations at 25 premises in connection with the FEMA violation case registered against foreign registered online gaming companies and websites operating in India recently. The ED has taken this action under the Foreign Exchange Act. ED probe reveals that over Rs 4,000 crore was sent abroad through shell firms. ED has said that raids have also been conducted at 11 places in Delhi, 7 places in Gujarat, 4 places in Maharashtra, 2 places in Madhya Pradesh and 1 place in Andhra Pradesh. These online gaming companies and websites are in small islands like Curaçao, Malta and Cyprus. However, all these are linked to Indian bank accounts opened in the names of representative persons who have absolutely no connection with the online gaming activity.

An ED official has said that the amount collected from general public through gaming websites is then routed through multiple bank accounts and finally false declaration of purpose of remittance against import of services Has been sent out of India. The official has said that remittance of income from racing or horse riding, or any other hobby, is not permitted under the provisions of FEMA. The ED has said that searches were also carried out at the premises of several hawala operators, Ashish Kakkar, Neeraj Bedi, Arjun Ashwinbhai Adhikari, Abhijeet Khot and individuals and entities associated with them in this regard.

The officer has said that amid the searches, several incriminating documents, electronic evidence related to the cases and the methods adopted by them to evade the investigating agencies have also been disclosed. Hundreds of companies have also been floated by prominent persons in the names of their employees to remit an amount of Rs 4,000 crore, under the guise of payment for import of goods and services, the official said.

The ED has said that several PAN cards, Aadhaar cards used to create such firms, mobiles used to operate bank accounts of these firms and office tickets have also been found and seized. The official said that the key persons were found using international virtual mobile numbers for instant messaging apps like WHATSAPP, TELEGRAM, SIGNALS and using pseudonyms like Pablo, John, Watson to hide their real identity. To evade the probe agencies, they were using remote-based servers, laptops, which were being accessed through remote access apps like Anydesk, TeamViewer.

ED further said that two remote accessed laptops have also been recovered. Seizures made during the search include incriminating documents and electronic equipment, confirming the overseas remittance of thousands of crores of rupees collected from the public through gaming websites.  

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