The Mumbai Zonal Office of the Directorate of Enforcement (ED) conducted search operations on June 12, 2024, at 19 locations in Mumbai and Pune under the Prevention of Money Laundering Act (PMLA), 2002. The raids were part of an ongoing probe into "Fairplay," involved in illegal broadcasting of cricket/IPL matches and online betting activities, including the Lok Sabha Elections 2024 results.
During the searches, movable assets amounting to approximately Rs. 8 Crore were seized or frozen, including cash, bank funds, demat account holdings, and luxury watches. Additionally, incriminating documents and digital devices were also recovered.
The ED initiated the investigation based on an FIR registered by the Nodal Cyber Police, Mumbai, on a complaint from M/s. Viacom18 Media Pvt Limited. The complaint alleged violations under various sections of the IPC, 1860, Information Technology Act, 2000, and Copyright Act, 1957, against M/s. Fairplay Sport LLC and others. The estimated revenue loss due to these activities is reported to be over Rs. 100 Crore.
ED's investigation revealed that Fairplay had made agreements through foreign-based entities in Dubai and Curacao with Indian agencies representing celebrities. Indian agencies allegedly failed to conduct due diligence before executing agreements for Fairplay's promotion.
Further investigation disclosed that Fairplay collected funds through various bogus/shell bank accounts, which were then layered through a complex network of bank accounts belonging to shell entities.
These funds were ultimately accumulated in pharmaceutical companies involved in bogus billing. Subsequently, the funds were siphoned off to overseas shell entities based in Hong Kong SAR, China, and Dubai. More than 400 bank accounts of shell entities are under scrutiny, along with the tracing and utilization of funds collected from the public by Fairplay. The investigation remains ongoing.