New Delhi [India], May 27 (ANI): The Enforcement Directorate (ED) has seized movable assets worth Rs 1.56 crore, including cash of approximately Rs 1.2 crore, and frozen funds amounting to Rs 3.8 crore held in various bank accounts.

The action was taken during search operations conducted on May 26 under the Prevention of Money Laundering Act (PMLA), 2002. The searches were carried out at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, Daman, and Uttar Pradesh as part of an ongoing investigation into the Cyprus-based illegal online betting platform Parimatch.

During the search proceedings conducted by the Mumbai Zonal Office of the ED, officials recovered and seized various incriminating documents and digital devices.

The ED initiated its investigation based on an FIR registered by the Cyber Police Station, Mumbai, against Parimatch.com for allegedly duping users through its online betting platform.

According to findings so far, the ED said, the platform defrauded investors by luring them with promises of high returns and is estimated to have generated over Rs 3,000 crore in a single year.

ED said its investigations have revealed that Parimatch and its associates operated through a complex network of mule accounts, payment intermediaries, and financial inclusion channels to collect, layer, and transfer user funds.

'In several instances, user withdrawals were processed without direct outward payments from accounts controlled by the platform. Instead, deposits made by other users were routed directly into the withdrawing user's bank account or UPI ID in multiple tranches, thereby masking the actual money trail and avoiding direct payment linkages,' said the agency.

'Further findings indicate that user deposits and withdrawals were routed through multiple current accounts opened in the names of software, fintech, and technology-related entities that were also engaged in legitimate business activities.'

ED stated that the accounts were allegedly used to collect user deposits and route payouts under the guise of vendor payments, business transactions, and payment gateway services.

The ED investigation has also uncovered the misuse of Banking Correspondent (BC) networks, mobile money transfer agents, Grahak Seva Kendras, Cash Management Services (CMS), local kirana stores, and retail outlets for processing payouts and facilitating the movement of funds linked to the platform.

'A layered mechanism was identified wherein user funds were routed through retailers and Grahak Seva Kendras operating under BC networks. Funds were first transferred to such retailers, who passed them to the BC, which in turn recharged the retailers' wallets. These wallets were then used to make payouts to Parimatch users, effectively concealing the true source and trail of funds,' mentioned the agency.

Additionally, it said, certain agents allegedly diverted cash received through CMS channels and adjusted it against RTGS transfers sourced from deposits made by Parimatch users, thereby disguising the origin of the funds.

The diverted cash was subsequently transferred outside India through hawala channels.

The ED probe has also revealed that Parimatch promoted its betting platform through surrogate advertisements under the names 'Parimatch Sports' and 'Parimatch News.'

'The platform adopted a hyperlocal marketing strategy by sponsoring teams in local cricket leagues across more than 15 states, as well as in hockey and football tournaments,' said the agency.

Moreover, it said, the platform promoted betting-related advertisements through leading quick-commerce applications and distributed promotional materials along with grocery deliveries to attract new users.

'These advertisements were strategically displayed during app usage and order placements to maximise user onboarding.'

So far, the ED said it has frozen assets worth Rs 112 crore in connection with the case, and further investigation is ongoing. (ANI)