ED Investigation Finds Illegal Practices of Money Laundering Through Kirana Stores

The Enforcement Directorate (ED) has reportedly discovered a money laundering operation being conducted by illegal gaming and betting apps through kirana stores

Also, ED’s investigation led them to a 40-year-old mobile phone accessories shop owner in Dahisar slum and a similar discovery was made at another retail shop on Mira Road in Naya Nagar

Apps under investigation include Mahadev Online Book, FairPlay and MagicWins

The Enforcement Directorate (ID) reportedly detected a money laundering operation conducted by illegal gaming and betting applications through stationery stores.

According to TOI’s report, these grocery shop owners were not aware that they were involved in illegal gambling activities and instead were convinced that they were operating under the RBI’s domestic money transfer (DMT) framework.

Simply put, the DMT framework allows money transfer to any bank account within the country. Through this service, a customer can instantly send money to any IMPS (instant payment service) or NEFT (national electronic funds transfer) supported bank account in the country and the recipient will have the money credited to their account within seconds.

The report said the plan aims to provide easy and safe money transfer options to migrants who do not have access to formal banking services.

The ED’s investigation also led to the discovery of a 40-year-old mobile phone accessories shop owner living in Dahisar slum and a similar discovery was made at another retail shop on Mira Road in Naya Nagar.

This is ED’s current concentrated A few weeks ago, regarding the growing influence of offshore betting platforms in India, he had expressed his vigilance against such gambling practices.

According to earlier reports, more than 2 dozen offshore gaming apps are currently under ED’s radar for sending and withdrawing money as they have caused gamblers to suffer losses to the tune of INR 1 Lakh Cr.

The report said illegal gambling companies, largely based outside the country, distribute small amounts of winnings through grocery stores, small retail outlets and even fake e-commerce sites, making it difficult for government agencies to track illicit funds.

The apps under investigation include Mahadev Online Book, FairPlay and MagicWins. ED recently conducted raids across Gujarat and Maharashtra targeting properties linked to MagicWins, and the report found that the app had similar payment networks in Haryana and Punjab and used DMT to pay out winnings.

The report noted that legal uncertainties surrounding online gaming and betting applications have enabled such operators to flourish, with the General Directorate of Security investigating numerous money laundering cases linked to hundreds of such platforms.

In early May, the Ministry of Consumer Affairs thinking Taking action against indirect and indirect advertisements promoting illegal betting and gambling, especially during cricket and election seasons when such activities increase.

The Ministry of Information and Broadcasting (MIB) also recommended In March, all promoters and influencers on social media will refrain from promoting or advertising offshore online betting and gambling platforms, including proxy ads.