Betting app scam: ED books Deverakonda, Rana Daggubati, more celebrities
What's the story
The Enforcement Directorate (ED) has booked 29 celebrities, including actors Vijay Deverakonda, Rana Daggubati, and Prakash Raj, for allegedly promoting illegal betting apps. While some celebrities have denied any wrongdoing and clarified their association with gaming platforms, the ED suspects these promotions may have been used for money laundering. Here's more on this.
Background
FIR based on a complaint by businessman Phanindra Sarma
The ED's action is based on a complaint by businessman Phanindra Sarma, who alleged that endorsements by notable public figures misled financially vulnerable users into incurring heavy losses, reported News18. The FIR was filed in March by the Cyberabad Police in Telangana, which also names actors Nidhhi Agerwal, Manchu Lakshmi, Pranitha Subhash, Srimukhi, and digital influencers including Harsha Sai and YouTube channel creators Local Boi Nani.
Defense
Celebrities clarify their positions
Deverakonda defended his association with A23, a skill-based gaming platform. His team emphasized that rummy has been legally recognized as a game of skill by the Supreme Court of India. Daggubati, meanwhile, said that his association with a gaming app ended in 2017, and all promotions were restricted to legally permitted regions after proper vetting. Veteran actor Raj admitted endorsing Junglee Rummy back in 2016 but added that the contract was terminated within a year.
Investigation details
ED probing financial transactions linked to endorsements
The ED is now investigating the financial transactions linked to these endorsements under the Prevention of Money Laundering Act (PMLA). Officials reportedly suspect that these endorsements may have been used to launder large sums of money. The next course of action in this case is yet to be announced by the ED.