
ED Summons Google and Meta in Widening Bet App Money Laundering Investigation
India’s Enforcement Directorate (ED) has summoned senior executives from Google and Meta to its Delhi office on July 21, marking a significant escalation in the investigation into illegal online betting and money laundering networks. The summons target the tech giants over their alleged role in promoting unlawful betting apps via advertisements, aiding suspicious financial flows.
The probe delves deep into “dabba trading” and betting platforms masquerading as skill-based gaming services, which authorities believe generate huge black money. These schemes are suspected of funneling illicit gains through sophisticated hawala channels, in violation of India’s Prevention of Money Laundering Act (PMLA) .
Under the Scanner: Google and Meta’s Alleged Role
ED officials, quoted by Indian news agency ANI, state that both platforms have become enablers for paid promotions and targeted advertising of illegal gambling apps. The crux of the accusations:
Advertisements on Google and Meta helped betting apps reach millions.
Demographic and interest-based targeting pinpointed potential gamblers.
These platforms allegedly coordinated with app developers to increase visibility and user acquisition .
By summoning representatives, the ED aims to obtain detailed records of advertising spends, targeting algorithms, and revenue shares that may implicate both companies in facilitating illegal operations.
Ongoing ED Operations and Mumbai Raids
The latest move follows coordinated raids across four Mumbai locations, resulting in the seizure of approximately ₹3.3 crore in unaccounted cash, along with foreign currency, luxury items, and cash-counting machines .
These raids supported a FIR dating back to January 9, lodged at Lasudiya Police Station in Indore, invoking Sections 319(2) and 318(4) of the Bhartiya Nyaya Sanhita (formerly equivalent to IPC Sections 419 and 420). These sections relate to cheating and fraudulent deceit .
Key Figures and Platforms Identified
Officials have named several operators and platforms under investigation:
Name Role & Allegation
Vishal Agnihotri Beneficial owner of VMoney and 11Starss platforms; acquired admin rights of LotusBook under a profit-sharing deal, retaining partial commission
Dhaval Devraj Jain Took over admin rights; co-built white-label betting platform with associate John States alias Pandey; launched 11Starss.in
Mayur Padya (Padya) Identified as hawala operator responsible for cash-based fund transfers
These individuals are alleged to form the core of an intricate betting and money-laundering network, involving layered financial transactions that evade formal detection.
ED Tactics and Legal Framework
The ED is employing a multi-pronged strategy:
- Advertisement Scrutiny: Seeking billing data, ad sales records, and campaign insights from Google and Meta to trace illegal promotion conduits.
- Financial Audits: Examining digital payment trails and hawala transfers linked to betting app developers.
- Raids and Seizures: Executing raids backed by FIR-based legal authority and seizing assets to establish patterns of illicit activity.
Charging under PMLA, the ED aims to disrupt the financial pipelines that fuel these illegal platforms, underscoring the seriousness of the breach.
What Summoning Tech Giants Implies
Summoning global tech behemoths signals a more aggressive stance by Indian authorities. It raises critical issues:
- Legal Responsibility: Platforms face accountability for advertisements they host, especially if these ads lead to illegal acts.
- Regulatory Pioneering: India's move could set precedents, prompting tech companies to self-regulate or be held accountable for content and ad partnerships.
- Global Impact: Responses from Google and Meta on this matter could influence international norms around ad governance and platform liability.
What Happens Next?
The next few weeks are pivotal:
- Google & Meta’s Response: Compliance or legal contestation may shape future ad policies.
- ED’s Ongoing Push: Continued raids and financial data analysis could reveal deeper links and broader networks.
- Judicial Oversight: Legal proceedings may define new lines of platform liability in money-laundering cases.
Final Take
India's ruthlessness in tackling illegal online betting — by dragging major tech firms into enforcement actions — reflects a bold shift in how digital platforms are treated under the law. This probe could not only disrupt the financial underpinnings of illegal betting but redefine digital advertising accountability in India.