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Tag: Enforcement Directorate

  • Betting racket whacked for Rs 307 crore as ED strikes in Dubai

    Betting racket whacked for Rs 307 crore as ED strikes in Dubai

    NEW DELHI: India’s financial crimes enforcers have seized Dubai property and domestic bank deposits worth Rs 307 crore in a crackdown on an online betting operation centred around the Fairplay platform, according to a PTI report. 

    The Enforcement Directorate froze land, villas and flats in the Gulf emirate alongside Indian bank accounts under anti-money laundering laws, the agency said on Monday. The haul represents one of the largest asset seizures in India’s escalating war against illegal online gambling.

    The probe stems from a complaint filed by Viacom18 Media with Mumbai Police’s cyber wing, alleging the betting platform had inflicted revenue losses exceeding Rs 100 crore through violations of information technology and copyright laws.

    Investigators subsequently bundled together multiple cases against Fairplay and its associates for illegal online betting operations. The web of connected entities suggests a sophisticated money-laundering network spanning domestic and international jurisdictions.

    The seizures underscore how Indian authorities are pursuing betting operators’ offshore assets with increasing vigour. Dubai has emerged as a favoured destination for parking proceeds from India’s booming but largely illegal online gambling sector.

    The Fairplay case highlights the complex interplay between broadcasting rights violations and betting operations, with platforms allegedly using pirated content to drive traffic to gambling sites.
    India’s regulatory crackdown on online betting has intensified as authorities grapple with the sector’s explosive growth and its links to money laundering and tax evasion.

  • IPL ex-chief Lalit Modi to be extradited from UK

    IPL ex-chief Lalit Modi to be extradited from UK

    MUMBAI: A special court in Mumbai yesterday allowed the Indian law-enforcement authorities to extradite from the United Kindom Lalit Modi, the creator of highly-successful Indian IPL franchise which was recently in news for potentially fetching BCCI Rs 4500 crore in telecast rights.

    The PMLA court permitted the Enforcement Directorate (ED) to send a Letter of Request (LR) to government in the UK for execution of a non-bailable warrant against the former IPL commissioner, and his transfer to India for facing probe in a money-laundering case.

    The ED is investigating a case against Modi in connection with a 2008 deal between World Sports Group (WSG) and Multi Screen Media (MSM) for IPL television rights to the tune of Rs 425 crore. The BCCI had registered a case in Chennai in this connection, followed by a case by the ED under the Foreign Exchange Management Act (FEMA). The directorate is probing Modi for misappropriation of funds from IPL during his tenure.

    The agency had on 8 November sought necessary steps to be taken by the competent authorities in the UK for locating him. The Prevention of Money Laundering Act (PMLA) court permitted the prayer. “The LR order will now be sent to the External Affairs Ministry, which will forward it to the competent authority in England for further action,” said special ED counsel Hiten Venegoankar.

    So far, three LRs had been issued against Modi by the same court to authorities in Mauritius, Singapore, and the UAE. The court had, on August 6 last year, issued an NBW (non-bailable arrest warrant) against the high-profile former IPL boss who was believed to be in the UK.

  • IPL ex-chief Lalit Modi to be extradited from UK

    IPL ex-chief Lalit Modi to be extradited from UK

    MUMBAI: A special court in Mumbai yesterday allowed the Indian law-enforcement authorities to extradite from the United Kindom Lalit Modi, the creator of highly-successful Indian IPL franchise which was recently in news for potentially fetching BCCI Rs 4500 crore in telecast rights.

    The PMLA court permitted the Enforcement Directorate (ED) to send a Letter of Request (LR) to government in the UK for execution of a non-bailable warrant against the former IPL commissioner, and his transfer to India for facing probe in a money-laundering case.

    The ED is investigating a case against Modi in connection with a 2008 deal between World Sports Group (WSG) and Multi Screen Media (MSM) for IPL television rights to the tune of Rs 425 crore. The BCCI had registered a case in Chennai in this connection, followed by a case by the ED under the Foreign Exchange Management Act (FEMA). The directorate is probing Modi for misappropriation of funds from IPL during his tenure.

    The agency had on 8 November sought necessary steps to be taken by the competent authorities in the UK for locating him. The Prevention of Money Laundering Act (PMLA) court permitted the prayer. “The LR order will now be sent to the External Affairs Ministry, which will forward it to the competent authority in England for further action,” said special ED counsel Hiten Venegoankar.

    So far, three LRs had been issued against Modi by the same court to authorities in Mauritius, Singapore, and the UAE. The court had, on August 6 last year, issued an NBW (non-bailable arrest warrant) against the high-profile former IPL boss who was believed to be in the UK.

  • Govt claims it invoked security considerations, says it is studying PCA order against Antrix in Davos case

    Govt claims it invoked security considerations, says it is studying PCA order against Antrix in Davos case

    NEW DELHI: The Permanent Court of Arbitration (PCA) in The Hague has said that the annulment of the agreement between Devas and Indian Space Research Organization’s commercial arm Antrix in 2011 which resulted in denying Devas commercial use of S-band spectrum constituted an expropriation.

    PCA administers cases under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).

    In a reaction, the Government of India reiterated that it had invoked the essential security interests through a well reasoned, valid and proper CCS decision. The award of the Tribunal is being examined and legal recourse, as deemed fit, will be taken.” We also remain committed to pursue our larger national interests including sovereign strategic security interests in this matter”, it said.

    This ongoing case with Mauritius-based Devas Corporation over sharing of spectrum on satellites may result in huge payments as compensation to Devas.

    The order said by this action, the Indian Government expropriated the investments of Devas’s foreign shareholders and also acted unfairly and inequitably, thus making it liable to pay financial compensation.

    (In a statement, the Government of India said The Tribunal had said it’s essential security interest provisions of the Treaty do apply in this case to an extent. The limited liability of compensation shall be limited to 40% of the value of the investment. The precise quantum has not been determined as yet. The Tribunal has dismissed the Claims as regards violation of other provisions of the Treaty viz., (i) unreasonable or discriminatory measures; as also (ii) Most Favoured Nation treatment, it said.

    In 2005 Antrix and Devas entered into an agreement for the long-term lease of two ISRO satellites operating in the S-band. The deal was for 70 MHz of S-Band frequency used to provide multimedia services by leasing most of the transponders on the GSAT-6 and GSAT-6A satellites for 12 years. Devas was to pay $300 million over the said period.

    However, the government annulled the contract after reports of unilateral process and presumptive loss to exchequer due to the deal. Following this the US investors in Devas moved a case against Antrix.

    In 2015 the International Chamber of Commerce (ICC) tribunal ruled that the Antrix’s annulation was unlawful and awarded Devas damages and pre-award interest of approximately $672 million, plus post-award annual interest accruing at 18 per cent until the award is paid in full.

    Devas Multimedia, based in Bangalore, was set up by former ISRO scientists and some U.S. investors. According to Devas website investors included Deutsche Telekom AG, Columbia Capital LLC, and Telcom Ventures LLC.

    Meanwhile, the Enforcement Directorate, has issued a show cause notice to Devas for violation of Foreign Exchange Management Act 1999 and are further investigating the case under Prevention of Money Laundering Act 2002. The Directorate has issued show cause notice to Devas for contravention to the provisions of FEMA 1999.

    The CBI has filed an FIR against, inter-alia, M/s Devas Multimedia Pvt. Ltd, Bangalore; and other unknown public servants of M/s Antrix/ISRO/DOS. This case is presently under investigation.

  • Govt claims it invoked security considerations, says it is studying PCA order against Antrix in Davos case

    Govt claims it invoked security considerations, says it is studying PCA order against Antrix in Davos case

    NEW DELHI: The Permanent Court of Arbitration (PCA) in The Hague has said that the annulment of the agreement between Devas and Indian Space Research Organization’s commercial arm Antrix in 2011 which resulted in denying Devas commercial use of S-band spectrum constituted an expropriation.

    PCA administers cases under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).

    In a reaction, the Government of India reiterated that it had invoked the essential security interests through a well reasoned, valid and proper CCS decision. The award of the Tribunal is being examined and legal recourse, as deemed fit, will be taken.” We also remain committed to pursue our larger national interests including sovereign strategic security interests in this matter”, it said.

    This ongoing case with Mauritius-based Devas Corporation over sharing of spectrum on satellites may result in huge payments as compensation to Devas.

    The order said by this action, the Indian Government expropriated the investments of Devas’s foreign shareholders and also acted unfairly and inequitably, thus making it liable to pay financial compensation.

    (In a statement, the Government of India said The Tribunal had said it’s essential security interest provisions of the Treaty do apply in this case to an extent. The limited liability of compensation shall be limited to 40% of the value of the investment. The precise quantum has not been determined as yet. The Tribunal has dismissed the Claims as regards violation of other provisions of the Treaty viz., (i) unreasonable or discriminatory measures; as also (ii) Most Favoured Nation treatment, it said.

    In 2005 Antrix and Devas entered into an agreement for the long-term lease of two ISRO satellites operating in the S-band. The deal was for 70 MHz of S-Band frequency used to provide multimedia services by leasing most of the transponders on the GSAT-6 and GSAT-6A satellites for 12 years. Devas was to pay $300 million over the said period.

    However, the government annulled the contract after reports of unilateral process and presumptive loss to exchequer due to the deal. Following this the US investors in Devas moved a case against Antrix.

    In 2015 the International Chamber of Commerce (ICC) tribunal ruled that the Antrix’s annulation was unlawful and awarded Devas damages and pre-award interest of approximately $672 million, plus post-award annual interest accruing at 18 per cent until the award is paid in full.

    Devas Multimedia, based in Bangalore, was set up by former ISRO scientists and some U.S. investors. According to Devas website investors included Deutsche Telekom AG, Columbia Capital LLC, and Telcom Ventures LLC.

    Meanwhile, the Enforcement Directorate, has issued a show cause notice to Devas for violation of Foreign Exchange Management Act 1999 and are further investigating the case under Prevention of Money Laundering Act 2002. The Directorate has issued show cause notice to Devas for contravention to the provisions of FEMA 1999.

    The CBI has filed an FIR against, inter-alia, M/s Devas Multimedia Pvt. Ltd, Bangalore; and other unknown public servants of M/s Antrix/ISRO/DOS. This case is presently under investigation.

  • Sun TV shares dip after ED attaches Marans’ assets

    Sun TV shares dip after ED attaches Marans’ assets

    MUMBAI: South Indian media baron Kalanithi Maran and his brother, the former Union telecom minister Dayanidhi Maran owned Sun TV network is facing some tough times, with the Enforcement Directorate (ED) deciding to close down on the Marans for their alleged involvement in the Aircel-Maxis case.

     

    This in turn has impacted the share price of Sun TV on the bourses. The company’s share prices slumped over 9.44 per cent and closed at Rs 411 on 6 April at the Bombay Stock Exchange (BSE), this against the previous close at Rs 453.85. On the National Stock Exchange (NSE), the scrip fell 10 per cent closing at Rs 410.40 as against its previous close of Rs 456.

     

    The market has reacted to the steps taken by the ED, which had issued an order to attach properties and assets worth Rs 742.58 crore belonging to Kalanithi Maran, his wife Kaveri Kalanithi and his brother Dayanidhi Maran.

     

    The ED’s investigation has revealed that Sun Direct TV Pvt Ltd (SDTPL) is promoted by Kalanithi Maran and Kaveri Kalanithi and they own 80 per cent of its shares. The shareholders of South Asia FM Ltd (SAFL) are Sun TV Network (60 per cent) and 20 per cent each are A.H. Multisoft Pvt Ltd and South Asia Multimedia Technologies Ltd., Mauritius. Kalanithi also holds 75 per cent of Sun TV Network Limited, while he and his wife own 90 per cent and 10 per cent respectively of Kal Comm Pvt. Ltd.

     

    According to the Central Bureau of Investigation (CBI), Dayanidhi Maran used his influence, while he was the Union telecom minister to help a Malaysian businessman, T. Ananda Krishnan, buy Aircel by pressurizing its owner C. Sivasankaran to part with his stake.
     

    Sivasankaran has also alleged that Dayanidhi favoured the Maxis Group in the takeover of his firm. He also said that the company made investments through Astro Network in a firm, purportedly owned by the Marans.

    As per reports, four companies, including the Chennai based Sun Direct, Britain based Astro All Asia Networks, Malaysia based Maxis Communications Berhad and the South Asia Entertainment Holdings of Mauritius, have also been named in charges filed on 29 August, 2014 by the CBI.

     

    The CBI said there was sufficient evidence to prosecute the accused and booked all the accused on the charges of criminal conspiracy under the Indian Penal Code (IPC) as well as the provisions of the Prevention of Corruption Act.

     

  • Dayanidhi smells ‘political vendetta’ behind ED’s actions

    Dayanidhi smells ‘political vendetta’ behind ED’s actions

    MUMBAI: A day after India’s Enforcement Directorate (ED) issued an order to attach properties and assets worth Rs 742.58 crore belonging to South Indian media baron Kalanidhi Maran and his brother, the former Union Telecom Minister Dayanidhi, the latter has alleged “political vendetta” and accused the ED of acting like a “puppet” in the hands of “someone.”

     

    “ED ‘flouted’ rules. It shows that somebody is behind it,” he told PTI on 2 April. He also said that he will take a legal recourse and come out clean in the case.

     

    Dayanidhi in a statement alleged that “someone was directing the ED from behind.”

     

    He said that while it was “evident” that he had no ownership in or connections to direct to home (DTH) platform Sun Direct or South Asian FM, the professional investments in these were “distracted.”

     

    Dayanidhi went on to add that foreign investments in a domestic company couldn’t be done without the approval of the Centre. “It cannot be but politics painting colours to such a business transaction. ED had ignored certain legal provisions in this matter,” he told PTI in Chennai on Thursday night.

     

    Meanwhile, DMK has denied any link to the Aircel-Maxis deal case, saying it has nothing to do with Sun TV or the deal. The party however, according to the report, will be fine tuning its strategy to ensure that its campaign for the upcoming elections is not marred.

     

    Contrary to the expectations, even after all the controversies Sun TV shares saw a hike of 3.20 per cent, closing at 453.85 up from 440.65 on 2 April.

     

    Sun TV also has a stake in the Indian Premier League (IPL) franchise Sunrisers Hyderabad and it remains to be seen if ED intervention will have an impact on the fast approaching multimillionaire league. 

     

  • Enforcement Directorate issues show cause to BCCI, IPL, MSM, WSG

    Enforcement Directorate issues show cause to BCCI, IPL, MSM, WSG

    MUMBAI: The Enforcement Directorate (ED) has issued a show cause notice against Board of Control for Cricket in India (BCCI), Indian Premier League (IPL), their officials and private multimedia firms for alleged contravention of forex laws in awarding a cricketing media rights contract in 2009. The ED has slapped a charge of Rs 425 crore for the same on the entities.

     

    The notices have been issued to close to ten individuals and entities, which include former BCCI boss N Srinivasan, the then IPL chairman Lalit Modi, chief operating officer (COO) Sunder Raman, and the officials of World Sports Group (WSG) and Multi Screen Media (MSM) for allegedly and fraudulently “manipulating” the contract and hence making illegal payments.

     

    The notices were served when the entire country was celebrating India’s win over Pakistan in the World Cup and witnessing the Pepsi IPL 2015 auction.

     

    It was in 2008 when the BCCI awarded the 10-year media rights to WSG on payment of $918 million. In the same year, WSG also entered into a deal with MSM to make Sony the official broadcaster. The contract was replaced a year later with a nine-year deal where MSM paid $1.63 billion.

     

    The ED stepped in on this case in 2009 and began a probe under the Foreign Exchange Management Act (FEMA) to investigate allegations that payment of Rs 425 crore facilitation fee by MSM Singapore to WSG Mauritius was made in an alleged unauthorised manner.

     

    As per media reports, the agency has now issued a show-cause notice to those officials in these organisations, who were at the helm and signatories to the contract deal as it probed and detected that FEMA and RBI laws were “contravened” in the final execution of this deal.

     

    The agency has issued the final notices after which all parties are allowed to appeal against the order within a period of 45 days or else pay the charged amount as mentioned in the notice.

  • Maxis-Aircel deal plunges Sun TV 8.55 per cent

    Maxis-Aircel deal plunges Sun TV 8.55 per cent

     BENGALURU:  Reports that both the Maran brothers were questioned by the enforcement directorate (ED) under the provisions of the money laundering act early this week brought down the share price of Sun TV Network (Sun TV) on the bourses today. The ED questioned the Maran brothers – Dayanadhi and Kalanithi about the Aircel-Maxis deal, according to media reports.

     

    The script closed 8.55 per cent down (down by Rs 32.15) at Rs 343.75 per equity share having face value of Rs 5 on the BSE. There was a spurt in traded volumes by 1.46 times and the stock had breached the 338.35 circuit to reach a low of Rs 335.65 on the BSE. The stock on 12 December opened at Rs 376 after it had closed on 11 December at Rs 375.90. The intraday high for Sun TV was Rs 379.60. The Total Traded Quantity (TTQ) on the BSE was 2.59 lakh shares with a turnover of Rs 9 crore, against a 2 week TTQ average of 1.49 lakh shares per day. The S&P BSE Sensex fell 0.91 per cent (down 251.33 points) to Rs 27350.68 today.

     

     Note: 100,00,000 = 100 lakh = 10 million = 1 crore.

     

     On the NSE, the stock fell 7.88 per cent (down Rs 29.65) to Rs 346.70 from its previous close of Rs 376.35. It opened at Rs 379.35 on the NSE with a High/Low of Rs 379.35/Rs 320.55. The traded volume of Sun TV shares on the NSE was 21,50,608 at a traded value of Rs 7,485.19 lakh. The NSE CNX Nifty fell 0.8.3 per cent (68.8 points) to 8224.10 at close of trading day today.