New Delhi: Enforcement Directorate (ED) raided locations of 15 companies running betting and dating apps. The accounts of these companies with the HSBC Bank have been frozen, and ₹470 million has been seized. Two weeks ago, a gambling racket, run by a Chinese company was busted in Hyderabad. This is another major operation after that.
ED raided locations of the companies running Chinese apps in Delhi, Gurgaon, Mumbai and Pune. The registered offices, directors of the companies and even the chartered accountants’ offices were raided. During the operation, ED seized 17 hard disks, five laptops, phones and many important documents. Two weeks ago, the Income Tax department had raided Chinese companies in Delhi, Gurgaon and Noida in a money-laundering matter. Online gambling was exposed while investigating that case.
Police claimed that there is a turnover of ₹1.3 billion in online gambling. Hyderabad police have arrested three people, including a Chinese citizen, Yah Hao. Two Indians, Dheeraj Sarkar and Ankit Kapoor, also have been arrested in the Chinese online apps matter. Chinese citizens had started many companies with the help of Indian Chartered Accountants. Initially, dummy Indian directors were appointed on the company boards. The ED claimed that thereafter, the stakes were transferred to the Chinese citizens. Police have registered FIRs against Dokypay Technology Private Limited, Lincoln Technology Private Limited and other companies. The entire action was taken up based on the FIR.
While it is coming to light that these Chinese companies are a party to the online gambling and money laundering rackets, ED suspects that these companies are also making use of the online wallets for ‘Hawala’ transactions other than online betting. Therefore, ED will be holding inquiries of other companies offering payment gateway and online wallets like Paytm, Cashfree and Razorpay.
Some Chinese companies have made huge investments in India. The Indian intelligence agencies have reported that these companies are directly or indirectly linked with the Chinese military. The Indian Army had retaliated fittingly on the border to the attack on the Indian soldiers by Chinese soldiers. At the same time, China is being replied very strongly even on the economic level. Ban on Chinese products in the energy sector, stoppage of Chinese investment in infrastructure and SMEs, and reviewing Chinese investment proposals are a few of the many decisions delivering a jolt to China on the economic level.