Explained: Rs 5,000 Crore Gaming App Scam That Shook Chhattisgarh; ED Arrests 4 Including ASI Linked To CM's Advisor

The Enforcement Directorate (ED) conducted searches at the residences of Chhattisgarh CM's political advisor Vinod Verma and two Officers on Special Duty (OSDs) on Wednesday (24 August), leading to the arrest of four individuals.

The investigation pertains to a money laundering case involving the Mahadev App, an online gaming platform implicated in fraudulent activities that amount to nearly Rs 5,000 crore.

The detained individuals are Assistant Sub Inspector Chandrabhushan Verma (who the ED alleges is associated with Vinod Verma), Sateesh Chandraakar and Hawala operatives Anil and Sunil Damani.

They were presented before Special Judge Ajay Singh Rajput on Thursday.

According to the ED, Chandrabhushan Verma utilized Vinod Verma's connections to allegedly offer bribes totaling Rs 65 crore to senior police officials and influential politicians in power within Chhattisgarh.

The agency further claimed that ASI Verma, through his links with Vinod Verma, had established contacts within the Chief Minister's Office. However, Verma has denied any such links.

The ED initiated an investigation into this matter last year. The Chhattisgarh Police has apprehended more than 200 individuals till now in the case.

The astonishing fact is that despite the ongoing actions by the ED, the Mahadev online gaming platform continues to flourish. This app facilitated numerous transactions, not only within India but also across international borders.

The Durg Police had previously undertaken a robust initiative. An experienced police officer, under the condition of anonymity, disclosed that during the investigation, information on more than 10,000 bank accounts was unveiled. These accounts were primarily savings accounts.

Operators of the Mahadev app illicitly transferred defrauded funds from these savings accounts to corporate accounts. The fraud was orchestrated from Dubai, where the kingpin resides. Thousands of middle-class Indian families were defrauded from Dubai.

The ED's letter to Durg Police dated 9 December 2022 sought information and FIR copies regarding banking transactions for money laundering investigations under the Prevention of Money Laundering Act (PMLA).

According to ED officials, most of the cases linked to the online gaming application are registered in the Supela and Mohan Nagar police stations of Bhilai in the Durg district.

During that time, the then SP of Durg had launched an awareness campaign against the Mahadev gaming app, revealing connections with corporate accounts and transactions of defrauded funds to foreign locations. The police identified connections of the online app to other states as well.

The fraud has a modus operandi. The game starts with an initial investment of Rs 500. Even if a customer loses, they are shown as victorious and are sent their winnings. These funds are then credited to their accounts. In this app, players frequently receive small winnings.

Consistently offering victories to those betting has created a craving for success. After experiencing wins, individuals are motivated to place larger bets, which subsequently result in losses.

The allure of winning large sums and the desire for quick earnings have driven many to squander their hard-earned money on this online betting app. As the operators control the software of the online game, the outcome for players was often predetermined.