Shraddha Kapoor and Ranbir Kapoor are being questioned for promoting the app.
New Delhi:
The Enforcement Directorate raided 39 locations linked to the Mahadev betting app last month and recovered gold bars, jewelery and cash worth a total of Rs 417 crore. The app made headlines last week when Bollywood actors Ranbir Kapoor and Shraddha Kapoor, who have appeared in the app’s advertisements, were summoned for questioning by the Enforcement Directorate.
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 came under the purview of investigating agencies only after a Rs 200-crore wedding in the UAE this February, which was paid entirely in cash.
Here’s a look at how the app managed to bypass the rules and flumox authorities
Attract new customers
The Mahadev online betting app was run by Saurabh Chandrakar and Ravi Appal from Dubai. Both of them belong to Bhilai in Chhattisgarh.
The company regularly acquired new customers by creating closed groups on new websites and chat apps. They would often run paid ads on social media apps and try to send people their numbers to make a profit. The ED said in its complaint that the numbers can only be contacted through WhatsApp.
One of Mahadev’s customer care executives will then guide the person to create a new user ID, after which they will be provided with two numbers. One will be used to deposit money into their account and place bets, while the other will be used to contact customer care and cash out their accumulated points or money.
All the accounts used to deposit or make payments were benami accounts which were opened fraudulently.
Whatever bets and games run by Mahadev will be rigged in such a way that the company will not lose money. Most new customers will continue to deposit money into their accounts after initially making a profit, but in the long run the customer will almost always suffer a heavy loss.
A network of call centers
Not only were the company’s illegal bank accounts rife, they also had call centers. Mahadev has opened hundreds of call centers in 4 countries – Malaysia, Thailand, India, and UAE – that will run 24*7 to build subsidiary apps and websites and interact with customers.
ED’s investigation revealed that the betting app will witness thousands of crores of transactions on a daily basis. The investigating agency claimed that the company was making a profit of Rs 200 crore per day.
Assets recovered by ED during raids on properties of Mahadev App.
A nexus of police, bureaucrats and politicians
Officials said that investigations have revealed that the Mahadev online book app is operated from the head office in the UAE. The agency said it works by franchising “panels/branches” to their leading partners on a 70-30 profit ratio.
Offshore accounts carry out large-scale remittances to liquidate betting earnings.
About 30 call centers were opened in major cities in India, and were managed by Anil Damani and Sunil Damani, two of Saurabh Chandrakar and Ravi Appal’s closest associates. Both Damani brothers have been arrested by ED.
The police, politicians and bureaucrats were roped in to run this syndicate.
One of Anil Damani’s tasks was to send some of the money that came through Hawala to the police, politicians and bureaucrats who were on board. This ensured that the app did not come under the radar of investigative agencies.
During interrogation, Anil Damini said that in the last two years, he along with his brother had done illegal transactions worth Rs 60 to 65 crore.
The Bollywood Connection
Ranbir Kapoor, Shraddha Kapoor, Kapil Sharma, Hina Khan and several other actors have been summoned by the Enforcement Directorate for questioning. Reason: He performed at a Dubai wedding in February and was paid through hawala transactions.
The ED said 17 Bollywood celebrities were brought to Dubai by chartered flight to perform at the wedding. All of them were allegedly given crores of rupees but through referrals.
Ranbir Kapoor is also accused of promoting an app that was run by the syndicate.
Officials said the actors are being questioned to provide insight into the source of the money received from the betting app.