FairPlay case: 4 firms helped betting app send Rs 13,000 crore abroad in guise of imports, says ED

MUMBAI: The Enforcement Directorate (ED) probing the money laundering case against betting app FairPlay for illegal streaming of IPL cricket matches said in its chargesheet that four firms, including one registered on the stock exchange, facilitated over Rs 13,000 crore in payments abroad under the guise of import payments.

The agency also said a payment gateway, Betty Finserve, processed Rs 3,000 crore in transactions for FairPlay, earning a commission of Rs 30 crore, which ED subsequently attached.

ED is investigating these entities' role in the case.

The chargesheet said FairPlay promoter Krish Shah sold 70% ownership rights of FairPlay to Saurabh Chandrakar of Mahadev Online Book group. Thereafter, Shah shifted his FairPlay business to the new app. Chandrakar managed the payment gateway of FairPlay.

The case is based on a police FIR registered on a complaint of Viacom18 naming eight companies, including FairPlay, alleging that different gaming-betting apps were illegally streaming IPL matches for which it had all rights, thus causing losses.

The Enforcement Directorate (ED) probing the money laundering case against the illegal betting app FairPlay for illegal streaming of IPL cricket matches recently filed a chargesheet against 11 accused in the case, including arrested brothers Chirag and Chintan Shah, key player in the FairPlay app case Krish Shah (who is wanted), Siddhant Iyer alias Joe Paul, and the FairPlay group along with associate companies.

FairPlay has no legal presence in India, no entity registered to carry out such business activities in India, and neither obtained a GST number nor PAN card in this regard.

The ED probe showed that numerous Indian celebrities endorsed and marketed the FairPlay app domestically. These personalities included "Badshah, singer, Sanjay Dutt, Jacqueline Fernandez, Ranbir Kapoor, Varun Dhawan, actor Shraddha Kapoor, Saina Nehwal (badminton), Mary Kom, Kiara Advani, Mithali Raj, A B De Villiers and Mr Graeme Smith," who established agreements with both overseas entities and Indian organisations, said the chargesheet.

The ED said FairPlay adopted a marketing strategy wherein top-line celebrities were appointed as brand ambassadors to create a perception of legitimacy and mainstream acceptance, which attracted a large number of users. By operating from outside India, FairPlay made it challenging for regulators to take action against the platform. One of the suspects told the ED in his statement that his firm received Rs 45 crore from FairPlay payment partners, which were paid to either celebrities or social media influencers.

In the chargesheet, the ED provided details of four companies through which Rs 4,000 crore was remitted abroad in a short span—Flawless Pharma Pvt Ltd, Aaquries Global Industries Ltd, and Remedium Lifecare Ltd, MEDEC Medicare Ltd. These funds were sent abroad under the guise of illegal/bogus imports of goods. The total amount remitted abroad through the four companies was Rs 13,000 crore.

Beffy Finserve, a payment gateway owned and controlled by Rahul Kumar Verma, acted as a payout facilitator for FairPlay to credit funds to its clients, said the ED chargesheet. Truefund Innovation India, which was handling the funds collected by FairPlay, acted as an illegal intermediary between Beffy Finserve and FairPlay, said the ED. It added that Krish incorporated Fanq Gaming in Mumbai in 2020 to venture into the online gaming industry in India. To navigate the complexities of Indian law regarding online gaming and betting and to bypass the restrictive legal framework in India, he strategically shifted the operations offshore by incorporating FairPlay in Curacao. He established additional entities in Dubai, Malta, and other jurisdictions, allowing him to operate the FairPlay app from outside India.

Paul, who is Krish's childhood friend, plays a critical role in the financial operations of FairPlay, the ED said. Paul is responsible for overseeing the collection of funds, managing the financials, and handling the intricate accounting processes of FairPlay. He was involved in setting up and managing a network of dummy/mule/shell bank accounts used to collect/layer/funnel funds generated from the online gaming and betting activities.



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