ED Freezes ₹8 Crore in Assets of Celebrities Linked to Betting Scandal

The Enforcement Directorate (ED) has attached assets worth ₹ 8 crore belonging to several well-known Indian celebrities, including former cricketer Yuvraj Singh and actor Sonu Sood, as part of an ongoing investigation into an illegal online betting operation linked to the platform 1xBet. This action, announced on March 15, 2024, is part of a broader money laundering probe under the provisions of the Prevention of Money Laundering Act (PMLA).

The assets affected include properties associated with a range of figures from the entertainment and sports sectors. Alongside Yuvraj Singh and Sonu Sood, the list includes former TMC MP Mimi Chakraborty, cricketer Robin Uthappa, model Neha Sharma, and Bengali actor Ankush Hazra. Notably, the assets of Meera Rautela, mother of actor and 1xBet India ambassador Urvashi Rautela, have also been included in this attachment.

Details of the Investigation

According to the ED, the total value of the attached properties is approximately ₹ 7.93 crore. This sum includes ₹ 1 crore linked to Sood, ₹ 59 lakh to Chakraborty, ₹ 2.5 crore from Yuvraj Singh’s company, YWC Health and Wellness Pvt Ltd, and ₹ 1.26 crore associated with Sharma. The findings suggest that these celebrities knowingly endorsed 1xBet, promoting it through surrogate arrangements, which is considered a punishable offense.

The ED’s investigation revealed that payments for these endorsements were routed through foreign entities, thereby concealing the true origins of the funds. This pattern of transactions indicates that the money involved is tied to the proceeds of crime generated from illegal betting activities.

The agency has issued warnings to celebrities and social media influencers regarding the legal implications of endorsing or promoting illegal betting platforms. The ED’s statement emphasized that engaging in such promotions can lead to significant legal consequences.

Background on 1xBet and Legal Context

The platform 1xBet, which operates from Curacao, has been accused of functioning in India without the necessary authorizations. The ED claims that the company utilized surrogate branding to attract Indian users through various media channels, including social media and print advertisements. Additionally, the investigation has traced connections to another brand, 1xBat, which allegedly facilitated these illegal betting activities across the country.

This latest action by the ED follows a similar case in October, where assets worth ₹ 11.14 crore owned by former cricketers Shikhar Dhawan and Suresh Raina were also attached as part of the same investigation. The Union government has recently introduced legislation aimed at banning real money online gaming in India, a move that reflects growing concerns about the impact of such platforms. According to market analysts, there were approximately 22 crore Indian users engaged with various online betting apps, with half being regular participants.

As the investigation unfolds, the ED continues to scrutinize the connections between celebrities and illegal betting operations, sending a clear message about the legal ramifications of endorsing such activities.