The Enforcement Directorate (ED) has arrested two individuals, Chirag Shah and Chintan Shah, in connection with a money laundering investigation linked to the FairPlay app, which allegedly broadcast IPL matches illegally.
The case was initiated based on a complaint filed by Viacom18 with Maharashtra Cyber, following which the ED registered a money laundering case against FairPlay and others.
The arrested accused were responsible for the app’s technical and software development. They will be produced before the ED court today. The case was registered last year.
The ED is pursuing investigations against Fairplay, which is a subsidiary application of Mahadev online gaming app, under the Prevention of Money Laundering Act (PMLA), 2002. It has been alleged that Fairplay had illegally streamed some of the IPL matches last year.
The ED undertook investigations after an FIR was registered by the Maharashtra cyber cell, based on the information given by Viacom18 Media Pvt Limited against Fairplay for illegal streaming of IPL matches. The FIR was lodged under various sections of the IPC, 1860, the Information Technology Act, 2000, and the Copyright Act, 1957 against Fairplay Sport LLC and others for causing a revenue loss exceeding Rs 100 crore (proceeds of crime).
The ED's investigation revealed that Fairplay made agreements through foreign-based entities in Dubai and Curacao with Indian agencies representing celebrities. It was found that Indian agencies did not perform due diligence regarding Fairplay before executing promotional agreements.
Investigations revealed that Fairplay collected funds through various bogus or shell bank accounts, which were layered through a complex web of bank accounts of shell entities and then accumulated in pharma companies involved in bogus billing.
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