ED Raids 25 Sites Linked To E-Gaming Companies
After conducting multi-state raids on foreign-registered online gaming websites and businesses operating in the nation, suspected of violating foreign exchange rules, the Enforcement Directorate (ED) discovered over Rs 4,000 crore in illegal foreign remittances.
In a statement, it said that during the operation, which was carried out in accordance with the Foreign Exchange Management Act (FEMA), 55 bank accounts were frozen and Rs 19.55 lakh and more than USD 22,600 in cash were seized.
On May 22 and 23, searches were conducted at 25 locations in Delhi, Gujarat, Maharashtra, Madhya Pradesh, and Andhra Pradesh.
According to the investigation agency, the raids revealed that these online gambling businesses and websites were registered in undeveloped island nations like Curacao, Malta, and Cyprus.
However, they are all connected to Indian bank accounts formed in the names of proxies who had nothing to do with online gambling. The money obtained from the general public through gaming websites is then transferred through several bank accounts before being sent outside of India on the false pretence that it is being sent to cover imports of goods and services.
"Remittances out of the income from racing/riding etc., or any other hobby, are not allowed under the provisions of FEMA, 1999," the statement read.
