UAE arrests alleged Mahadev scam mastermind Saurabh Chandrakar; extradition expected soon

Saurabh Chandrakar, the alleged mastermind in the multicrore Mahadev Online Book scam has been arrested by the UAE authorities on the charges of money laundering, sources in the know told ET.

The Enforcement Directorate (ED), India’s anti money laundering agency which has booked Chandrakar and his associates in multiple cases has been pursuing for his extradition with the UAE for over a year now. The federal agency will bow send a formal extradition request soon, sources added.

“ While Chandrakar in the past has been placed under house arrest by the UAE authorities, the information of his formal arrest has been communicated on Thursday. The ED has booked him and his associates under money laundering charges and has been pursuing his extradition. A request will be now send within a week’s time,” a senior official privy to the development told ET.


The ED's probe has also revealed that earlier one of the promoters, Ravi Uppal was arrested by the UAE authorities in pursuant of the Interpol Red Corner Notice (RCN) issued against him. Subsequently the agency has sent a request through the competent authority to extradite him. Uppal and Chandrakar renounced their Indian passports and have bagged the citizenship of Oceania country, Vanuatu.

ED’s probe had revealed that the Mahadev betting app is an alleged umbrella syndicate arranging online platforms for enabling illegal betting websites to enrol new users, create User IDs and laundering of money through a layered web of benami bank accounts.

The ED in its earlier chargesheets has said that the promoters had invested the alleged proceeds of crime (PoC) in crypto currency, bogus diamond trade, stock and offshore real estate.

In a supplementary chargesheet filed in December, the ED had alleged that Mahadev Online Book and its sister concerns namely, Reddy Ana Bok and FairPlay would be having monthly earnings of Rs 450 crore every month at the average rate of Rs 3 lakh earnings per panel per month.

The federal anti-money laundering agency further claimed that one of the accused, Asim Das, the courier, allegedly delivered the money to former Chhattisgarh chief minister Bhupesh Bagel. The agency also said that examination of the email sent by another accused Shubam Soni revealed that so far Rs 508 crore was allegedly paid to Baghel.

The government has banned over two dozen websites allegedly laundering money from illegal offshore betting applications that were masquerading as ecommerce and forex trading portals, following investigations by the ED, said people aware of the matter.

They include OctaFX, Fairplay, Magicwin, Mahadev Online Book and 30 others operated by promoters located in Spain, Dubai, Russia and Pakistan, as per a probe by the ED’s western region. The proceeds of crime (PoC) have been pegged at Rs 10,000 crore with the amount put at twice that if an all-India estimate is made, said the people cited.

PoC under money laundering is used to define tainted gains generated through illegal activities covered under the Prevention of Money Laundering Act (PMLA). ED is the federal agency that investigates offences under PMLA.

The laundering ecosystem has the promoters of illegal betting apps at the helm, backed by illegal payment aggregators aa well as former bank officials who help with advice on how to provide an aura of legitimacy to funds using payment gateways and banks, said the people cited above.