ED raids Dream11's office in ₹2,400cr money laundering probe
What's the story
The Enforcement Directorate (ED) has launched a major investigation into a money laundering case involving ₹2,434 crore. The agency raided 27 locations across the country on Friday, including the office of Dream11 and properties linked to its co-founders Harsh Jain and Bhavit Sheth. The probe is centered around the alleged fraudulent diversion of funds from a private real estate fund associated with Jai Corp Limited.
Case background
ED's investigation follows CBI FIR
The ED's investigation comes after a First Information Report (FIR) was filed by the Central Bureau of Investigation (CBI) on February 18, following Bombay High Court directives. The alleged irregularities in the case took place between 2004 and 2017. Media reports have suggested that some public-sector entities may have also lost money by investing in the private real estate fund at the center of this probe.
Sponsorship details
Dream11's association with Indian cricket team
Dream11, co-founded by Harsh Jain (son of Anand Jain) and Bhavit Sheth, was once a jersey sponsor for the Indian cricket team. However, the Board of Control for Cricket in India (BCCI) ended its partnership in August after a new law banning real-money gaming came into effect. The ED conducted searches at 23 locations in Mumbai, two locations in Bengaluru, and one location each in Nashik and Raipur under the Prevention of Money Laundering Act.
Fraud allegations
CBI's investigation into Jai Corp and Anand Jain
The CBI's investigation relates to a January 31 order from the high court and complaints made by a complainant who approached Mumbai Police's Economic Offences Wing in 2021 and 2023. The FIR mentions offenses of criminal conspiracy, cheating, forgery, and using forged documents as genuine. The complainant alleged that between 2006-2008, Jai Corp chairman Anand Jain set up two companies, and raised ₹2,434 crore from the public for real estate projects under the 'Urban Infrastructure Opportunities Fund' scheme.
Financial misconduct
Allegations of fund diversion and fraud
The complainant alleged that the accused diverted funds by investing in and giving unsecured loans to their sister companies, defrauding the public. The CBI FIR also alleged fraud involving private real-estate funds in Mauritius and Jersey Channel Islands, fraudulent trading in futures of a petrochemical firm, and diversion of bank loans from India to Mauritius and Sharjah.