ED arrests tech duo for money laundering; court awaits HC order on quashed FIR
Duo were produced before the special PMLA court on Thursday and remanded to two days of ED custody
The Enforcement Directorate (ED) has arrested Chirag Shah and Chintan Shah in a money laundering probe linked to the FairPlay app, which allegedly streamed IPL matches illegally. Viacom18 had filed a complaint with Maharashtra Cyber, following which the ED registered a money laundering case against FairPlay and others. The arrested accused were responsible for the app’s technical and software development.
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Both were produced before the special PMLA court on Thursday and remanded to two days of ED custody. However, the defence argued that the arrest was illegal, as the original FIR by Maharashtra Cyber had been quashed by the Bombay High Court.
The prosecution asked the defence to provide the HC order, but the defence claimed it had not yet been uploaded. The court granted two-day custody, stating that further decisions would be taken once the order is available.
The ED is investigating FairPlay, a subsidiary of the Mahadev online gaming app, under the Prevention of Money Laundering Act (PMLA), 2002. As per the Supreme Court’s guidelines, a PMLA case cannot stand without a predicate offence.
According to the ED, the website www.fairplay.in was engaged in unauthorised online betting on various sports, including tennis, cricket, soccer, basketball, badminton, and boxing, and live-streamed Indian Premier League matches without permission.
It also allegedly facilitated betting on the 2024 Lok Sabha elections, the agency claimed. FairPlay has no legal presence in India, with no registered entity, GST registration, or PAN to conduct such business activities, the ED stated.
The ED case stems from an FIR filed by Mumbai Police’s cyber cell based on a complaint by Viacom18 Media Pvt Ltd, alleging a revenue loss of over R100 crore due to the unauthorised broadcast of IPL matches.
Krish Laxmichand Shah, the key figure behind FairPlay, had registered multiple companies, including Play Ventures N.V. and Dutch Antilles Management N.V. in Curaçao, as well as Fair Play Sport LLC and Fairplay Management DMCC in Dubai, among others, the agency claimed.
Chirag Shah and Chintan Shah were allegedly involved in facilitating and executing a sophisticated money laundering scheme, the ED stated. They actively participated in diverting proceeds of crime amounting to over Rs 100 crore, it claimed.
With inputs from agencies
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