Mahadev Betting App Case: Sky Exchange Operated Like Corporate Business, Allowing Small Punters To Become Bookies, ED Investigation Reveals

Mahadev Betting App Case: Sky Exchange Operated Like Corporate Business, Allowing Small Punters To Become Bookies, ED Investigation Reveals

According to Bagri's statement and the ED's investigation, this entire betting system operates much like online gaming.

Ashish SinghUpdated: Sunday, May 12, 2024, 10:37 PM IST
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Accused From Left To Right Hari Shankar Tibrewal, Prashant Bagri | FPJ

The Enforcement Directorate's (ED) investigation into the Mahadev illegal betting cartel has uncovered crucial information regarding the betting operations of the Mahadev subsidiary app, Sky Exchange. This app operated like a corporate business, where any small punter could become a bookie could increase their customer/client base, purchasing points worth crores from the betting app and thus earning desired profits. 

According to the ED's prosecution complaint (PC), during the investigation, a close associate of the absconding accused and promoter of Sky Exchange, Harishankar Tibrewal, named Prashant Bagri, revealed the functioning of Sky Exchange. Bagri disclosed that the entire business model of Sky Exchange was operated using three IDs, with the main one being the admin ID. This ID was exclusively held by Harishankar Tibrewal and his close partners, through which the entire betting business of Sky Exchange was managed. An admin ID provided the user with the authority to issue new IDs, set credit limits, deposit and withdraw points, and even lock any ID. Bagri further stated that he managed two admin IDs of Sky Exchange.

Sky Exchange Admin ID

Sky Exchange Admin ID |

Sky Exchange Master ID

Sky Exchange Master ID |

The second ID was the super ID, used for bookie betting operations. Additionally, an individual with an admin ID can create IDs for "super" clients. The third ID was the master ID. The punters with master IDs were considered a key labor force for bookies and the Sky Exchange betting operation. These "master" IDs are responsible for creating IDs for the clients or players who place bets through Sky Exchange.

According to Bagri's statement and the ED's investigation, this entire betting system operates much like online gaming. Players purchase points to play online games by paying, and the price of those points is decided by the gaming company. Similarly, in Sky Exchange, betting is done on betting points, the price of which is decided by the master, super, and admin IDs themselves. For example, the master ID creates a client ID for a customer who wants to bet, and gives them 100 points for betting. These points are priced at 16 paise, 5 rupees, and 9 rupees. 

# If a client bets 1 lakh rupees at 16 paise, they will receive 16,000 rupees if they win. If they bet 1 lakh at 5 rupees 100 points, they will receive 5 lakh rupees, and if they bet at 9 rupees 100 points, they will receive 9 lakh rupees.

# but  If a client loses 1 lakh at 16 paise, they will lose 1 lakh rupees, plus they will have to pay 16,000 rupees to the master ID punter.

# Similarly, if a client loses 1 lakh at 5 rupees 100 points, they will have to pay 5 lakh rupees to the master ID punter, 

# and if they lose at 9 rupees 100 points, they will have to pay 9 lakh rupees to the master ID punter. 

 This way, thousands of IDs earn crores of rupees on a single match by Sky exchange. This entire transaction is done in cash through points.

The important thing is that the bookie with the super ID sells points to the master ID punters at his own price. And this is why the punter with the master ID has the right to add as many clients as possible to become the bookie of the super ID.

According to sources, the punter with the master ID must have at least 100 clients to become the bookie of the super ID so that he can control the prices of the points.

The ED prosecution complaint(PC) revealed that Hari Shankar Tibrewal, the promoter and a partner in the Mahadev betting cartel, generated around ₹22 crore weekly from Sky Exchange.

The prosecution complaint(PC) states that the main promoters of Mahadev Online Book  cartel used the proceeds of crime for large cash expenditures in India. These expenses were for advertising betting websites and self-promotion to attract new users and franchise seekers. The promoters spent a significant amount on advertising and organized star-studded events, paying celebrities with illegally obtained betting money.

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