A massive investigation into an alleged online betting and fintech-linked money-routing network has intensified, with authorities estimating the size of the operation at nearly ₹23,000 crore. Officials indicate that as the financial trail is further examined, the total exposure could rise to around ₹30,000 crore.
The probe is being led by the Directorate General of GST Intelligence (DGGI) and is being closely and actively monitored by the Central Board of Indirect Taxes and Customs (CBIC), the apex body overseeing customs and indirect taxation in India.
According to sources, investigators have already identified around 177 shell companies and dummy merchant entities allegedly used to route funds linked to online betting and real-money gaming platforms. These entities are suspected to have been created to mask the origin of funds and suppress taxable turnover.
Among the fintech companies under scrutiny is Wegofin Digital Solutions Private Limited. Sources indicate that the company’s founding directors — Yaras Suresh Babu, YS Prabhu Kumar, and Raja Sekhar Reddy — are under the scanner for their alleged links to the broader network.
Investigators have also identified an associate allegedly operating from Dubai, who is suspected to be one of the masterminds behind the network’s operations and cross-border financial coordination.
The investigation has already triggered developments within the banking ecosystem. Earlier enforcement action involved Fino Payments Bank, whose CEO Rishi Gupta was arrested during the course of the probe in connection with suspected betting-linked transactions routed through banking channels.
Officials say the role of financial institutions that provided payment infrastructure to fintech program managers is also under examination. A private bank is also currently under scrutiny, and reports indicate that if serious compliance lapses are established, enforcement action similar to the Fino case cannot be ruled out.
Authorities are working to trace the complete money trail involving fintech intermediaries, shell companies, and payment gateways, and to identify the ultimate beneficiaries of the transactions. Investigation is also tracking suspicious financial flows and cross-border movements.
Officials indicated that if evidence of proceeds of crime or international money-laundering links emerges, parts of the case may be referred to the Enforcement Directorate for further investigation under anti-money-laundering laws.
Meanwhile, tax authorities are preparing for large-scale GST recovery proceedings, and enforcement sources suggest that strict action is expected against entities and individuals found to be involved, including attachment of assets and recovery of unpaid taxes.
With the investigation expanding rapidly and more financial trails being uncovered, officials believe the total value of the network could eventually approach ₹30,000 crore, making it one of the largest fintech-linked enforcement cases linked to illegal online betting networks in India.
Source from: https://www.republicworld.com/business/rs-23000-crore-online-bettingfintech-network-under-probe
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