Mint Explainer: Mahadev app and the alleged money laundering scandal

livemint.com:

₹450 crore ($57 million) with estimates indicating a staggering ₹5000 crore diverted by the entity in ‘hawala transactions’. The app, now blocked by the ministry of electronics and information technology (Meity), was allegedly overseen by individuals based in Dubai -- Sourabh Chandrakar and Ravi Uppal. Mint delves into the events leading to the scam.

The gambling app allowed users to bet in real-time on a number of games, including cricket, football, games of chance, and tennis. The app was very popular with supposedly over 10 million users. ED alleged that the app was used to enroll new users, create user IDs, and launder money through a network "no name" bank accounts.

These accounts were being used to transfer money between India and Dubai for 'hawala' or underground banking transactions. The ED has also accused Chhattisgarh chief minister Bhupesh Baghel of accepting kickbacks worth ₹508 crore from the UAE-based promoters of the app. As per the ED, seven FIRs have been filed by individuals who claim to have lost money on the app.

Last week, the Mumbai Police registered an FIR against the Khiladi app. The owners have now been arrested under Section 19 of the Prevention of Money Laundering Act (PMLA). Mumbai-based social worker Prakash Bankar, who filed an FIR, claimed that the accused, including Chandrakar, were actively involved in match-fixing of major cricket matches and tournaments held in India.

Bankar alleged that as much as ₹15,000 crore has been siphoned off. For the match-fixing, Chandrakar allegedly operated through Dinesh Khambat from London and Chander Aggarwal, also based abroad. These individuals have been considered to be top match-fixers in India, who operate as partners, run several betting sites, and