Odisha EOW Busts Online Betting Racket Operating From China & Dubai, 2 Arrested
The Economic Offences Wing (EOW) has arrested directors of a Kolkata-based shell company Hakim & Rustam Fabrics Private Limited on charges of duping over 800 investors in the Odisha’s Ganjam district.
The accused duo was arrested on Wednesday from the Shibpur area in the Howrah district of West Bengal
The arrested have been identified as Rustam Khan and Md. Hakim. The investors and lakhs of others across India had invested money in 18football.com to earn quick bucks.
A case (Case No. 06 dated 17.02.2023 under Sections 420/467/468/471/120-B IPC r/w Section 4/5/6 of PCMCs (Banning) Act and Section 6 of OPID Act/Section 66(D) of the IT Act) has been registered in this connection at the EOW police station.
The duo was produced before the Court of Chief Judicial Magistrate, Howrah, on Wednesday and brought on a five-day transit remand for their production before the designated court under OPID, Berhampur in Odisha, the EOW stated.
The investors were required to create an account with “18football.com” either by application or through an offline referral link and were asked to bet money on some football matches as prescribed in the website/app. The investors were also provided with so-called foreign “mentors” to assist them in betting. These mentors used to communicate through telegram or apps only.
The investors are promised of lucrative returns like a 3% compound return on investment daily, recharge bonus, referral bonus, extra bonus on the earning of the downline members, salary bonus, and daily withdrawal option among others.
The investors were also provided with so-called foreign “mentors” to assist them in betting. These mentors used to communicate through telegram or apps only.
In the initial period, the fraudsters paid the promised return for some days to the investors but stopped making payments when the membership increased and closed the app “18football.com”.
“The scammers used multiple shell companies/firms and their directors to route the ill-gotten money and also used mule accounts for multi-layering of money transactions to confuse law enforcement agencies. The two arrested have confessed that they received a small amount of commission to run this shell company. However they used to get orders/directions from one Md Sheikh Saifi from Dubai,” the release further said.
The two arrested accused have confessed that they received a small amount of commission to run this shell company. However they used to get orders/directions from one Md Sheikh Saifi from Dubai, they said.
“Out of over 150 bank accounts involved in this racket, EOW has analysed 17 accounts to date, out of which transaction of Rs 108 crore has already been traced. It is suspected that money involved in this scam may go beyond Rs 1,000 crore,” DIG EOW, JN Pankaj said.
