The owners have now been arrested under Section 19 of the Prevention of Money Laundering Act (PMLA). Last week, the Mumbai Police registered an FIR against the Khiladi app. As per the ED, seven FIRs have been filed by individuals who claim to have lost money on the app. The ED has also accused Chhattisgarh chief minister Bhupesh Baghel of accepting kickbacks worth ₹508 crore from the UAE-based promoters of the app. These accounts were being used to transfer money between India and Dubai for 'hawala' or underground banking transactions. ED alleged that the app was used to enroll new users, create user IDs, and launder money through a network 'no name' bank accounts. The app was very popular with supposedly over 10 million users. The gambling app allowed users to bet in real-time on a number of games, including cricket, football, games of chance, and tennis.

Mint delves into the events leading to the scam. The app, now blocked by the ministry of electronics and information technology (Meity), was allegedly overseen by individuals based in Dubai - Sourabh Chandrakar and Ravi Uppal. The company has reportedly amassed illicit funds worth over ₹450 crore ($57 million) with estimates indicating a staggering ₹5000 crore diverted by the entity in ‘hawala transactions’.

Online betting apps