ED Investigates 29 Celebrities in Online Betting Money Laundering Case
The Enforcement Directorate (ED) has filed a money laundering case against 29 celebrities, including actors Vijay Deverakonda, Rana Daggubati, and Prakash Raj, as well as social media influencers. The investigation stems from allegations that they endorsed online betting platforms that are accused of generating crores in illicit funds. The ED, which based its case on five police FIRs, is probing the endorsement fees received and the extent of the celebrities' involvement in promoting the alleged illegal gambling operations.
Unpacked:
The celebrities have been accused of violating the Public Gambling Act, 1867, by promoting illegal betting apps. The Enforcement Directorate is also investigating under the Prevention of Money Laundering Act (PMLA), given the allegations of laundering proceeds from these platforms.
The celebrities are alleged to have promoted the betting platforms through paid partnerships, advertisements, and social media endorsements. These activities involved leveraging their public profiles to encourage users to join or use the online betting platforms.
The investigation was initiated after five police FIRs were registered in Andhra Pradesh and Telangana. Complaints claimed that celebrity endorsements misled financially vulnerable users, causing significant losses, and that these promotions may have facilitated money laundering activities.
Some celebrities have publicly defended their actions, stating that their associations with betting platforms were believed to be legally sound at the time, though some acknowledged potential ethical concerns. For example, Vijay Deverakonda defended his association with A23, emphasizing legality over personal ethics.