Mumbai: In a sensational turn of events, the Enforcement Directorate (ED) has uncovered a sprawling money laundering nexus allegedly involving the FairPlay betting app, tying it to prominent Bollywood celebrities, talent management companies, and a network of shell firms across diverse industries, including pharmaceuticals, entertainment, fashion, and hospitality. This nationwide probe has revealed how celebrity promotion, endorsements and bogus companies were strategically used to launder money and pay high-profile figures.
The spotlight has fallen on Bollywood actors Jacqueline Fernandez and Sanjay Dutt, along with rapper Badshah, whose promotion, endorsements and financial transactions are under ED scrutiny. These revelations underline the depth of the alleged conspiracy, where the glamour of celebrity promotions masked an intricate network of alleged illegal activities orchestrated by the app’s operators.
Actress Jacqueline Fernandez reportedly received significant payments from Dubai-based Trim General Trading LLC for endorsing FairPlay. Documents provided by Jacqueline to the Cyber Cell, later shared with the ED, revealed that Trim General Trading LLC had contracted Mumbai-based Pals And Peers Entertainment Private Limited (PPEPL). A few months ago, the ED conducted searches at PPEPL’s office in Bandra, where they seized crucial documents, including bank transaction statements from PPEPL to actress Jacqueline Fernandez and fixed deposit records from Shiv Sahyadri Sahakari Patpedhi Maryadit.
The ED investigation reveals that PPEPL allegedly acted as an intermediary or facilitator, potentially handling key aspects such as advertising, marketing, and event sponsorship for FairPlay. The firm was allegedly involved in engaging celebrities and influencers to promote the app.
The ED investigation revealed that actor Sanjay Dutt received a payment of Rs 25 lakhs from “Play Venture,” an overseas-based gaming company, for promotion and endorsing FairPlay on his Instagram and other social media platforms. Documents provided by Sanjay Dutt’s team to the Cyber Cell, which were later shared with the ED, indicated that Play Venture had contracts with GS Worldwide Entertainment(GSWEPL), a company owned by well-known film producer Guneet Walia, also known as Bunty Walia. A few months ago, the ED conducted a search operation at Bunty Walia’s production house, where they seized one pen drive and several documents.
The ED’s investigation suggests that GS Worldwide Entertainment Pvt. Ltd. allegedly facilitated marketing activities for FairPlay, potentially handling celebrity endorsements, sponsorship deals, or financial flows related to the app’s illegal activities.
The ED issued a show-cause notice to Pals and Peers Entertainment Pvt. Ltd. (PPEPL) and GS Worldwide Entertainment Pvt. Ltd. (GSWEPL) as part of the Original Application (OA) process filed under the Prevention of Money Laundering Act, 2002. The OA was confirmed on November 18th by the Adjudicating Authority (AA), which allowed the case to proceed and ensured the continuation of the legal process. This confirmation validates the attachment of properties identified as ‘proceeds of crime’ and serves as the legal basis for freezing accounts or seizing assets linked to the investigation under Section 17(4) of the Act.
In response to the show-cause notice as part of the Original Application (OA) process filed under the Prevention of Money Laundering Act, 2002, Pals and Peers Entertainment Pvt. Ltd. (PPEPL) argued that the notice was unreadable and that the ED had incorrectly attached their properties. They stated that there was no evidence linking them to FairPlay, and none of the alleged proceeds of crime had been transferred to them. The respondent further argued that the entire show-cause notice and attachment were based on presumptions. They claimed that the ED had not recorded sufficient grounds to justify the attachment of assets under Section 5 of the PMLA. The respondent also sought the right to cross-examine the complainant, asserting that the property in question had been acquired through legitimate income and that they had no involvement in the generation of the alleged proceeds of crime.
On the other hand, GS Worldwide Entertainment Pvt. Ltd. (GSWEPL), in response to the show-cause notice, clarified that the only items seized by the ED were a pen drive and some documents, which they argue are not relevant to the alleged proceeds of crime. They clarified that their involvement was limited to hiring and endorsing celebrities for events, with no direct connection to the alleged money laundering activities. The documents seized do not establish any link to illicit transactions or proceeds of crime.
Rapper Badshah received payments from the account of Lyukos Group FZF, a foreign-based company. In his statement provided to the Maharashtra Cyber Cell, Badshah included documents, contracts, and transaction details, showing that Lyukos Group FZF had contracts with Mumbai-based talent management company, TM Ventures Private Limited, for endorsing and promoting FairPlay.
The ED team also conducted a search operation at the TM Ventures Private Limited office in Andheri West, where they seized various signed blank cheques, ledgers of artists’ clients of TM Ventures, the company’s shareholding pattern, legal agreements, several invoices raised by TM Ventures, and the phone of the company’s director. The ED’s investigation suggests that TM Ventures Pvt. Limited allegedly facilitated marketing activities for FairPlay, potentially providing infrastructure for the app’s operations. This may have included celebrity endorsements, sponsorship deals, or financial transactions linked to the app’s illegal activities.
In response to the show-cause notice, TM Ventures Private Limited also submitted a reply similar to the one given by Pals and Peers Entertainment Pvt. Ltd. (PPEPL).
The ED investigation has identified Krish Laxmichand Shah as the mastermind behind FairPlay. Operating from Dubai, Shah has allegedly registered multiple companies, including M/s Play Ventures N.V. and M/s Dutch Antilles Management N.V. in Curacao, M/s Fair Play Sport LLC and M/s FairPlay Management DMCC in Dubai, and M/s Play Ventures Holding Limited in Malta. These companies and their subsidiaries allegedly approached Mumbai-based event management firms and production houses for the promotion and endorsement of FairPlay. The investigation revealed that Shah, along with his associates Chirag Shah and Chintan Shah, managed the technological and software development operations of FairPlay. The group allegedly used proceeds of crime to acquire various movable and immovable assets, registering them either in their own names or under the names of family members and associates.
The ED has accused 132 individuals, bogus companies, dummy pharmaceutical companies, entertainment companies, production houses, hospitality firms, and several designers and fashion companies in this operation. However, it remains unclear whether the ED will consider any Bollywood celebrities as witnesses, as the ED’s prosecution complaint is still pending.
So far, the ED has conducted multiple searches, seizing incriminating documents, digital devices, and movable assets, with assets worth approximately Rs 335.78 crore attached in connection with the case.
