ED Attaches ₹35.80 Crore in Betting and Gambling Proceeds Linked to Jitender Tejabhai Hiragar Case.

Headnote:

The Enforcement Directorate (ED) has provisionally attached ₹35.80 crore under the Prevention of Money Laundering Act, 2002 (PMLA), in connection with a large-scale illegal betting and gambling racket operated through over 1,400 bank accounts. The investigation uncovered a sophisticated network that used forged documents to open dummy bank accounts for laundering illicit funds from betting and other unlawful activities. This action forms part of ED’s ongoing efforts to curb organized financial crimes exploiting digital and banking channels.

Background:

• The case stems from an FIR registered by the Crime Branch, Ahmedabad City Police, against Jitender Tejabhai Hiragar and others for offences involving illegal betting, gambling, and financial fraud.

• The ED investigation began with 448 primary bank accounts that were opened using forged documents of unsuspecting individuals.

• These accounts were found to be receiving funds linked to betting, gambling, and related illegal activities.

• The money trail revealed a first layer of more than 995 secondary accounts that handled transactions exceeding ₹1,000 crore, serving to conceal the origins of the illicit funds.

• The investigation identified a well-organized racket involving multiple intermediaries who managed dummy accounts to facilitate large-scale laundering of betting proceeds.

• Using these channels, the accused diverted, layered, and integrated illegal earnings into the formal banking system.

ED’s Observations:

• The agency provisionally attached ₹35.80 crore held in over 300 bank accounts across multiple banks that were used for betting and gambling transactions.

• Funds in these accounts were traced to illegal online betting platforms and associated digital wallets, used to cheat individuals under the guise of gambling and investment opportunities.

• The ED established that these accounts were created using fraudulent KYC documents of innocent persons whose identities were misused.

• The pattern of fund movement indicated layering and integration of criminal proceeds, key hallmarks of money laundering under PMLA.

• The illicit network’s structure involved:

1. Primary Accounts: 448 accounts used to initially receive funds from betting and gambling operations.
2. First Layer Accounts: Over 995 accounts scrutinized, showing total transactions exceeding ₹1,000 crore.
3. Subsequent Dummy Accounts: Used to further disperse funds and obscure the source of illegal earnings.
4. • The attachment of ₹35.80 crore marks the first major financial seizure in this case, with more assets likely to be identified as the investigation progresses.
5. • Further investigation is ongoing to trace remaining proceeds of crime, identify additional beneficiaries, and determine the involvement of digital intermediaries.

Legal Provisions Discussed:

• Sections 3 & 4, Prevention of Money Laundering Act, 2002 (PMLA) – Defines and penalizes money laundering.

• Section 5, PMLA – Power to provisionally attach properties derived from proceeds of crime.

• Section 8, PMLA – Adjudication and confirmation of attachment by Adjudicating Authority.

• Scheduled Offences: Cheating and forgery under the Indian Penal Code, 1860; offences under the Information Technology Act, 2000 relating to online fraud and illegal betting.

• The action demonstrates ED’s commitment to dismantling organized financial networks engaged in illegal online betting and associated money laundering activities.

Citation: 2025:ED:PR:03.11.25(A)

Case: Directorate of Enforcement v. Jitender Tejabhai Hiragar & Others

Agency: Directorate of Enforcement (ED), Ahmedabad Zonal Office

Date of Release: 3 November 2025

Provisional Attachment Order (PAO) Date: 29 October 2025