On the grounds of a crackdown on an illegal online gambling racket ran by a China-based company, a Chinese national and three of his Indian associates were arrested by the Police of Hyderabad in Delhi on Wednesday and brought to Hyderabad on Thursday.
The Chinese individuals and companies were raided by income tax sleuths after being suspected for money laundering in Delhi, Gurugram and Noida. The online Map gambling was organised by various companies under the umbrella of China-based “Beijing T Power Company”. It is claimed that transactions worth Rs. 1,100 crore was unearthed, transactions were made out during lockdown.
Online firm’s head of operations for Southeast Asia Yah Hao, three Indian Directors named- Dheeraj Sarkar, Ankit Kapoor, and Neeraj Tuli were arrested. While gambling online, two men from Hyderabad lost Rs 1.64 Lakh and Rs. 97,000.
The four have been booked under IPC Sections 420 (cheating) and 120-B(conspiracy) and under the Telangana Gaming Act. Gambling is banned in Telangana and some other states.
The organisers were also accused of cheating and manipulating results by two youths who had placed bets while playing online. These firms have made transactions through two bank accounts. Though most of the money has already been transferred to different accounts, including those abroad, police were able to freeze Rs 30 crore (a day’s earnings) parked in two accounts. They claimed to have unearthed remittances overseas of Rs 110 crore so far.
Hyderabad police commissioner Anjani Kumar told the press that servers were based in China but data-hosting services are cloud-based in US. The entire technical operation are carried out by the china-based directors of the company. The payments were provided through India-based payment services.
Under Beijing T Power Company, several firms — Growing Infortech Pvt Ltd, Sily Consulting Services Pvt Ltd, Pan Yun Technology Services, Linkyun Technology Pvt Ltd, Dokypay Technology Pvt Ltd, SpotPay Technology India Pvt Ltd, Daisylink Financial Pvt Ltd, and Huahuo Financial Pvt Ltd — were organising betting through online games.
Hyderabad police chief added that online gaming was organized for the viewpoint of gamers through telegram groups.
Those who added more reference and members were paid a commission. On these groups websites were introduced to the people where registered members could play and place bets.
Telangana Gaming Act says:
“Gaming means playing a game for winnings or prizes in money or otherwise and includes playing a game of mutka or satta or online gaming for money or any other stakes and lucky board and wagering or betting, except where such wagering or betting takes place upon a horse race.”
For offence, 3-month to 1-year jail term besides fine of Rs 3,000
Second offence: Minimum 6-month jail term and a penalty of no less than Rs 5,000
Third offence: Minimum 1-year jail term and a penalty of no less than Rs 10,000