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One of India’s largest betting scams, the Mahadev betting app case may have generated up to Rs 40,000 crore in illegal revenue
Cases of online scams and frauds are regularly reported in the media. A relevant example is the Mahadev betting app case, which was also called by other names such as Mahadev Online Book, Mahadev Book, MOB, etc. It is considered as one of India’s largest illegal gambling and money laundering scams since 2023. Let us check out the details and know the current status.
Mahadev betting app – Modus operandi
It is estimated that the Mahadev betting app was launched around 2017-2018. While witnessing a slow start initially, the app became hugely popular during the COVID-19 pandemic. The promoters of the game were operating from overseas locations such as Dubai. This made it difficult for the authorities to catch the big fish after the betting scam was identified. Mahadev betting app functioned primarily as an umbrella syndicate, a platform that hosted various illegal betting apps and websites.
Users were lured via various channels such as WhatsApp groups, social media ads and agent networks. The app functioned independently and was not available on Google Play or App Store. Users who completed the registration process were provided a unique betting ID. Various cash deposit options were provided such as bank transfers, UPI or benami (proxy) accounts. Betting activities were carried out on a mobile app/website interface.
Winners were allowed to withdraw their earnings, while the money collected via losses by players remained with the app operators. For increased traction, the app owners were operating hundreds of franchised panels or branches across the country. The panel owners received a commission on the revenue they generated. It is reported that the betting games were often rigged to increase the profits of the operators. To win user’s trust and confidence, the app had dedicated call centers to handle queries and complaints.
Mahadev betting app – Scale of operations
People are often drawn to things that are banned. Moreover, the greed factor also comes into play. People want to get rich quick without wanting to do the hard work. Some people were also drawn to Mahadev betting app, as they did not have a proper job or had a low income. The thing people liked about Mahadev betting app is that the platform offered various betting options.
It includes sports betting in games like cricket, football, badminton, tennis and kabaddi. Casino and card games were also offered such as Poker, Teen Patti, Rummy, Dragon Tiger, etc. Betting was also undertaken for events like election results and virtual sports. These unique betting offerings were a great attraction for players.
It is estimated that Mahadev betting app could have been generating more than Rs 200 crore per day at its peak. As per estimates provided by the Enforcement Directorate (ED), the scam could be around Rs 6,000 crore. Some reports suggest an even higher number at around Rs 40,000 crore over several years. The money was routed through thousands of benami bank accounts opened with fake/stolen KYC.
A number of Hawala networks, shell companies and trade-based laundering were involved in the betting scam. Funds were diverted to overseas locations such as the Middle East and brought back as white money in the form of stock market investments, property purchases and Foreign Portfolio Investment (FPI). It is alleged that protection money was paid to various authorities and politicians.
Mahadev betting app case – Current status
Activities on the Mahadev betting app are illegal across most states in the country. A case filed by ED is currently under investigation. A chargesheet was filed in 2023 against 14 accused, including two promoters. Since the investigation commenced, ED has seized assets worth over Rs 2,600 crore. Such seizures continue, as the investigation progresses.
The Central Bureau of Investigation (CBI) is also participating in the investigation. Despite the crackdown, it is reported that the Mahadev betting app could still be operational in new avatars. Authorities, including the ED, CBI and other forces, continue to take action against the app operators.
