Mumbai, Dec 23: The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) before the Special Court (PMLA), Indore, against a syndicate allegedly involved in illegal dabba trading and online betting activities operating across multiple Indian cities and Dubai, with investigators flagging significant operational and financial linkages to Mumbai.
The complaint, filed on December 22 by the ED’s headquarters, pertains to a network with operations spanning Indore, Mumbai, Ahmedabad and Chennai, along with offshore connections in Dubai. Officials said several aspects of the alleged activities, including betting platforms, financial transactions and earlier police cases, were concentrated around Mumbai, which acted as a key operational hub.
The ED probe stems from an FIR registered by the Indore Police under provisions of the Bharatiya Nyaya Sanhita, 2023, relating to cheating and fraud. During the investigation, the agency uncovered a critical Mumbai connection, revisiting a 2021 FIR at N M Joshi Marg police station related to an illegal online betting racket, where a chargesheet had already been filed.
Dabba trading is an illegal and unregulated form of securities trading that bypasses formal stock exchanges, enabling clandestine financial transactions. Most of the implicated platforms do not have official listings on recognised app stores such as Google Play or Apple’s App Store, and users reportedly accessed them via websites or by downloading APK files from unofficial sources. The investigation revealed that several mobile and web-based platforms were suspected of operating illegal trading and betting networks under white-label arrangements. The platforms currently under scrutiny include VMoney, VM Trading, Standard Trades Ltd, iBull Capital, LotusBook, 11Starss and GameBetLeague.
According to officials, white-label arrangements refer to setups where control rights, referred to as ‘admin rights’, were bought and sold or shared on a profit-sharing basis. These arrangements allowed operators to run illegal betting operations under the guise of legitimate trading services, completely outside regulated financial systems.
According to the ED complaint, the network operated through a combination of manipulated online trading platforms and illegal betting websites, supported by a cross-border money laundering mechanism. During the investigation, the agency identified Vishal Agnihotri as the alleged key operator of the syndicate. He was assisted by Tarun Shrivastava, who managed day-to-day financial operations and mule accounts, and Srinivasan Ramasamy, who manipulated MT5 servers to generate false trading outcomes.
During the investigation, the agency identified a parallel betting network with Mumbai-linked operations involved in grey market manipulation for underground online betting, simulated trading and fund layering through offshore entities. The probe revealed that Dhaval Devraj Jain operated the underground platform LotusBook247, while Dharmesh Rajnikant Trivedi managed the offshore entity iBull Capital. Nidhi Chandnani allegedly facilitated the movement and layering of funds through Dubai-based structures. Investigators found that clients were shown simulated trades on platforms such as VMoney and 8Stock Height, which had no connection to any recognised stock exchange. Betting platforms like LotusBook247 and 11Starss were found to be operating clandestinely, using anonymous user accounts, encrypted communication channels and cash-based settlements.
The ED investigation revealed that Vishal Agnihotri, the alleged beneficial owner of VMoney and 11Starss, initially acquired administrative rights to the betting platform LotusBook under a five per cent profit-sharing arrangement, before transferring most of the rights to Dhaval Devraj Jain while retaining a minor stake. Jain, along with an associate, is reported to have developed the white-label platform that was subsequently used to operate 11Starss.in.
The ED has identified Proceeds of Crime (PoC) amounting to Rs 404.46 crore, allegedly generated from manipulated trading platforms, illegal betting websites and unregulated white-label applications. The complaint said the agency provisionally attached assets worth Rs 34.26 crore, including immovable properties valued at Rs 28.60 crore, movable assets worth Rs 3.83 crore, and balances of Rs 1.83 crore held in bank and demat accounts.
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The complaint further stated that search operations led to the seizure of more than Rs 5.21 crore in cash, 59.9 kilograms of silver bars and a 100-gram gold bar. The ED also seized jewellery valued at approximately Rs 1.94 crore, luxury watches worth Rs 4.77 crore and frozen cryptocurrency holdings exceeding Rs 0.41 crore. “These properties represent the material proceeds generated and possessed by members of the syndicate through their unlawful activities,” the complaint said.
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