Saurabh Chandrakar, who is believed to be the mastermind behind the massive Mahadev Online Book scam, has been arrested. This scam is linked to money laundering, a crime where illegal funds are disguised to appear legitimate. The Enforcement Directorate (ED), which is responsible for enforcing economic laws and combating financial crime, is expected to request his extradition soon after announcing his arrest.
What Is the Mahadev Online Book Scam?
The Mahadev Online Book scam involves a betting app that facilitated illegal gambling activities. The total amount of money involved in this scam is staggering. The estimated proceeds of crime (PoC) from this case are about ₹10,000 crore (approximately $1.2 billion). Some experts believe that the overall amount could be even higher, potentially doubling this figure. The PoC refers to the money earned through illegal activities, as outlined in the Prevention of Money Laundering Act (PMLA).
How the Scam Operated
Earlier this year, the ED revealed that many bank accounts linked to the Mahadev betting app played a crucial role in laundering large sums of money. For example, around ₹1,100 crore was funneled into the stock market, showing how the app was used to disguise illegal money as legitimate earnings. The investigation uncovered a web of illegal activities, including the use of thousands of SIM cards to avoid detection. This means that the scammers took many steps to hide their actions and the money they were making.
Key Figures Behind the Scam
The Mahadev betting app was run from Dubai by Saurabh Chandrakar and his partner, Ravi Uppal. The app allowed people to place bets on various sports and games, including poker, cricket, and football. According to the ED, the app operated by offering franchises, or “branches,” to trusted associates, who shared the profits on a 70-30 basis. This method helped them attract new users and launder money through complex networks of fake bank accounts.
Reports indicate that this operation generated an astonishing ₹200 crore (about $24 million) every single day. This level of income highlights the scale of the illegal activities associated with the app.
Chandrakar’s Lavish Wedding
In February 2023, Saurabh Chandrakar had a lavish wedding in Ras Al Khaimah, UAE. It was reported that around ₹200 crore was spent on the celebrations, raising eyebrows about the source of this wealth. During the wedding, private jets were used to fly relatives from India to the UAE, and various celebrities were reportedly paid to perform at the event.
The ED believes that the money used for the wedding came from the illegal profits generated by the Mahadev betting app. This lavish spending has drawn attention to how illegal funds can be used to maintain a lifestyle of luxury and excess.
Allegations of Corruption
There have been serious allegations regarding the misuse of funds from the Mahadev Online Book scam. It was claimed that some of the illegal profits were used as bribes for politicians and government officials. One significant allegation is that Chhattisgarh Chief Minister Bhupesh Baghel received ₹508 crore in kickbacks from the app’s promoters. This accusation has sparked a political controversy just before the upcoming state assembly elections. However, Chief Minister Baghel has denied these claims, calling them an attempt to damage his reputation.
Legal Actions and Investigations
On October 21, 2023, the ED filed its first chargesheet in the case, naming 14 individuals, including Saurabh Chandrakar and Ravi Uppal. The ED has temporarily seized ₹41 crore worth of assets linked to the illegal activities. Ravi Uppal was arrested by Dubai police after Interpol issued a red corner notice at the request of the ED. This notice allows police in different countries to work together to catch fugitives.
In addition, the ED has conducted raids on multiple locations linked to money laundering operations across several Indian cities, seizing ₹417 crore in the process. During a raid in Mumbai, the agency identified seven individuals, known as hawala kingpins, who are believed to be involved in money laundering activities. The ED has also arrested actor Sahil Khan for his suspected role in the scam.
Connections to Organized Crime
As the investigation into Saurabh Chandrakar’s extravagant wedding unfolded, it revealed connections to hawala operations, which are informal money transfer systems often used for illegal activities, in both the UAE and Pakistan. Reports indicate that Chandrakar and Ravi Uppal have collaborated with Mushtaqeem Ibrahim Kaskar, the brother of gangster Dawood Ibrahim, to create a similar betting app for Pakistan called ‘Kheloyar.’
Conclusion
The Mahadev Online Book case sheds light on the serious issues of illegal online gambling, money laundering, and political corruption. The ongoing investigations aim to hold all those involved accountable and address the broader implications of such illegal activities. This case highlights the need for stricter regulations and monitoring of online gambling to prevent similar scams in the future.
