The ministry of electronics and information technology (MeitY) on Sunday issued orders to block 22 illegal betting apps and websites including Mahadev Book Online and Reddyannaprestopro.
These orders were issued under Section 69A of the IT Act, following investigations conducted by the Enforcement Directorate (ED) into an illegal betting app syndicate. Recently, ED conducted raids on Mahadev Book in Chhattisgarh, uncovering the app’s illicit operations. The agency also alleged that the promoters of the Mahadev Book App had made regular payments of approximately Rs 508 crore to Chhattisgarh chief minister Bhupesh Baghel. The Congress party, however, dismissed these allegations as a malicious attempt to tarnish Baghel’s image.
“Chhattisgarh government had all the power to recommend shutting down of website/app under Sec 69A IT Act. However, they did not do so and no such request was made by the State government while they have been investigating it from last 1.5 years,” said Rajeev Chandrasekhar, minister of state for electronics and IT.
“Infact, the first and only request has been received from ED and it has been acted upon. Nothing prevented the Chhattisgarh government from making similar requests,” Chandrasekhar added.
As part of the probe last month, the probe agency had frozen and seized assets worth Rs 417 crore in connection with the Mahadev App online betting case. Currently, the probe agency has arrested at least four people, including Bhim Singh Yadav, a constable in the Chhattisgarh Police force, and one Asim Das, under Section 19 of the Prevention of Money Laundering Act (PMLA) for the commission of the offense of money laundering under Section 3, punishable under Section 4 of PMLA, 2002.
The probe agency also conducted searches against the money laundering networks linked with Mahadev App in cities like Kolkata, Bhopal, Mumbai, etc.
The investigation revealed that the Mahadev App is run from a central head office in the UAE. The company used an online book betting application to enroll new users and to launder money through various benami bank accounts.
In line with recent amendments to the IT rules, any online real money gaming or website involving betting or wagering as an outcome will not be allowed to operate. The government’s objective with these rule amendments is to ensure that online gaming companies comply with Indian laws and that users are protected from potential harm, particularly related to betting or gambling outcomes in games.
The government has also notified a self-regulatory mechanism that will verify games involving real money but do not promote betting or gambling as outcomes. However, an approved self-regulatory organization (SRO) is yet to be established by the government.
