Prima facie evidence of the accused's involvement in money laundering based on his activities and admissions.

Headnote:
Money Laundering - Online Betting - The court rejected the bail application of the accused under Section 439 of the Cr.P.C. for the offence punishable under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002 (PMLA)
Fact of the Case:

The accused was arrested in connection with a case registered by the Directorate of Enforcement, Government of India for the offence of online betting through the Mahadev Betting App. The accused was alleged to have been involved in collecting and laundering proceeds of crime from the betting app and supplying it to bureaucrats and politicians as protection money.
Finding of the Court:

The court found prima facie evidence of the accused's involvement in the crime based on his visits to Dubai, purchase of land, and transactions through his wife's bank account. The court also considered the accused's admission of meeting the promoters of the betting app and his alleged role in collecting and supplying proceeds of crime.
Issues: The court considered the accused's involvement in money laundering, his visits to Dubai, purchase of land, and transactions through his wife's bank account.
Ratio Decidendi: The court applied the provisions of the Prevention of Money Laundering Act, 2002 and considered the accused's admission of meeting the promoters of the betting app and his alleged role in collecting and supplying proceeds of crime as prima facie evidence of his involvement in the crime.
Final Decision: The bail application of the accused was rejected, with the court emphasizing that its observations should not influence the fair trial before the Special Judge, PMLA.

ORDER

1. This is 1st bail application filed under Section 439 of the Cr.P.C. for grant of regular bail to the applicant, who has been arrested on 3-11-2023 in connection with Crime No. ECIR/RPZO/10/2022 registered by Directorate of Enforcement, Government of India through its Assistant Director, Distt. Raipur (C.G.), for the offence punishable under Section 3 and 4 of the Prevention of Money Laundering Act, 2002 (in short, hereinafter referred to as ‘PMLA’) .

2. Brief facts of the case are that, earlier FIR under Section 120B and 420 of the IPC was registered at Police Station Mohan Nagar, Durg, thereafter charge sheet bearing No. 157/2022 was filed on 29-7-2022 by Police Station, Mohan Nagar, Durg, CG against Alok Singh Rajput, Ram Pravesh Sahu and Khadag alias Raja Singh and others for being involved in Online betting in Live Ludo, Footbal, Casino games and marks through Mahadev Book. Such FIRs were also registered in various police stations of Andhra Pradesh. On being inquired by the Enforcement Directorate from concerned police stations of State of Chhattisgarh and Andhra Pradesh, they shared documents pertaining to the offence of online betting app ‘Mahadev App’. Since some of the FIRs contained schedule offences as defined in PMLA and it was found that, huge amount of transaction of money has been made by various persons through online betting app and huge money has been laundered, therefore, ECIR/RPZO/10/2022 was registered by the Zonal Office, Raipur of Enforcement Directorate for the offence under Sections 3 and 4 of the PMLA. Earlier Prosecution complaint was filed against 14 persons on 20- 10-2023. On subsequent investigation, present applicant and other 4 accused persons were also found involved in the crime in question, hence 1st supplementary prosecution complaint was filed. Upon investigation being made by the Enforcement Directorate, the matter revealed as under :-

2.1 Mahadev Betting App provides online platform for illegal betting in different live games like Poker, Card games, Chance games, betting of cricket, badminton, tennis, footbal etc. and also provide facility for playing a number of card games like TEEN PATTI, Poker, Dragon Tiger, Virtual Cricket games using cards etc., even Apps allowing placing bets on different elections in India. It is nothing but a conglomeration of illegal betting websites, which are hosted from aborad. Mahadev Online Book advertises about these betting websites through closed Whats App groups, and Facebook pages and attracts thousands of youths to earn quick buck via betting and entertainment. The illegal betting is owned by Sourabh Chandrakar and Ravi Uppal, who hail from Bhilai, Chhattisgarh. Mahadev Online Book group also acquired another betting app namely ‘Reddy Anna’ and is co-owner of the betting app namely ‘Fairplay’.

2.2. The betting websites need User Credentials to access the websites and play and bet on them. Mahadev Online Book controls creation of the User IDS. For this they run a Call Centre in Dubai, for which, Sourabh Chandrakar and Ravi Uppal have taken along around 1000 youths from their neighbouring towns in Chhattisgarh. Further, they have created small network of User IDs and given these networks to their trusted friends & associates to manage in the name of being ‘Panel’ owners.

2.3 The betting app is operated by various ‘Panel/Branches’, which are operated by Sourabh Chandrakar and Ravi Uppal like a small franchise. They keep nearly 70-75% of the profit of the panel operations.

Their Head Office is in Dubai, which gives ‘ID and Password’ for the panel owner, who can create sub ID for players/punters. The IDs are generally created on multiple websites like ‘leser247.com, laserbook247.com, wwwp.betbhai.com, betbook247.com tigerexch247.com, wwwp.cricketbet9.com etc of Mahadev Online Book. The panel owners receive funds from customers into bank accounts, which are arranged/provided by the panel owners only. All the games are rigged in a manner that o

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2024 Supreme(Online)(CG) 464

Prima facie evidence of the accused's involvement in money laundering based on his activities and admissions.

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