The special PMLA court on Saturday extended ED custody of Chirag Shah and Chintan Shah, arrested in connection with the the Fairplay app money laundering case for two more days.
Chirag and Chintan were arrested on Wednesday and were produced before the court on Thursday.Their lawyer however had contended the predicate offence has been quashed by the high court on Wednesday. Since there was no formal order the court had remanded the two to ED custody till Saturday.
On Saturday when the duo were produced before the court at 4, the defence lawyers however informed the court that the order is not been prepared. In such circumstances, the prosecution sought for their custody till Thursday. The special court however, extended their ED custody till Tuesday without going into the merits of the allegations.
The ED’s investigation is based on an FIR filed by the Nodal Cyber Police in Mumbai, following a complaint by Viacom18 Media Pvt. Ltd. The complaint accuses Fairplay Sports LLC and others of illegal activities that caused revenue losses exceeding Rs 100 crore, constituting proceeds of crime.
It is worth to note that if the predicate offence – the case registered by the cyber police in this case is quashed, the probe into the money laundering by the Enforcement Directorate cannot proceed and has to close.
ED’s connection ‘Chirag and Chintan played a key role in the technological development and operational maintenance of Fairplay. They co-founded M/s. Wohlig Transformations Pvt. Limited, which was instrumental in designing, developing, and managing multiple URLS associated with Fairplay, ensuring seamless functionality despite regulatory scrutiny.
To further strengthen Fairplay’s technological backbone, Chirag and Chintan incorporated M/s. Wohlig Transformation FZE LLC in Dubai, which played a crucial role in handling Fairplay’s software infrastructure, platform maintenance, and operational updates, ED claimed.
ED further claimed, Their responsibilities included regularly updating and rotating bank accounts linked to Fairplay, managing WhatsApp and Telegram numbers for transactions, and overseeing UPI-based fund collection ia Google Pay, PhonePe, Paytm, Razorpay, and cryptocurrencies like Ethereum.
According to ED, Fairplay is primarily engaged in unlawful betting, unauthorized broadcasting of cricket matches and large-scale money laundering activities. It was found that Krish Laxmichand Shah is the founder and key person behind Fairplay and he has registered various companies/entities outside India for functioning of Fairplay. ED claims that Krish and his wife are in Dubai and has not joined the probe.
ED has claimed that Krish has set up multiple companies across various jurisdictions, 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. The ED alleges that Krish Shah, along with Chirag Shah and Chintan Shah, not only managed the platform’s technological infrastructure but also played a pivotal role in laundering illicit funds.
The probe indicates that illicit funds generated through betting activities were funneled into acquiring high-value assets, including real estate and luxury properties. These assets were allegedly registered under the names of family members and associates to conceal the money trail.
In its ongoing probe, the ED has attached assets worth approximately Rs 219.66 crore. These include demat account holdings and immovable properties such as land plots, flats, and commercial warehouses located in Ajmer (Rajasthan), Kutch (Gujarat), Daman, Thane, and Mumbai (Maharashtra). With this latest action, the total value of assets attached in the case has crossed Rs 331 crore.
