In its FIR, the CBI has alleged that Jai Corp Ltd. syphoned off funds raised from financial institutions and investors, which led to a loss of INR 2,434 Cr to certain entities
The Enforcement Directorate (ED) yesterday reportedly conducted search operations at multiple premises linked to the erstwhile real money gaming (RMG) giant Dream11 in connection with the alleged INR 2,434 Cr financial fraud involving Jai Corp Limited.
As per Storyboard18, the agency carried out searches at the office of the gaming platform as well as premises linked to Dream11 cofounder Bhavit Shah. The operation was undertaken under anti-money laundering laws.
Last reported, the searches were still underway to seize documents, digital evidence and financial records to ascertain the extent of Dream11’s involvement and Sheth’s financial exposure in the alleged money laundering network.
If reports are to be believed, the ED is probing suspected financial links between Jai Corp, Sheth and the gaming company’s parent Dream Sports. Agency sleuths are reportedly probing whether the misappropriated funds in the Jai Corp case were routed through entities like technology and sports gaming platforms.
Officials reportedly said that the searches, which spanned 30 cities including Mumbai, Bengaluru, Nashik and Raipur, covered locations linked to industrialist Anand Jaikumar Jain, a director of Jai Corp Limited, the company’s sister concerns, and associated business entities.
At the heart of the matter is the first information report (FIR) registered by the Central Bureau of Investigation (CBI) against Anand Jain, Jai Corp Limited and others. This came as the Bombay High Court (HC), in February this year, ordered the CBI to constitute a special investigation team (SIT) to conduct a comprehensive probe into allegations of financial irregularities at the company.
The HC’s directions came in response to a plea, which reportedly alleged misuse of public funds, round-tripping of money through shell companies in tax havens and creation of fictitious invoices to syphon off funds.
In its FIR, the agency has reportedly alleged that Jai Corp Ltd. syphoned off funds raised from financial institutions and investors, which led to a loss of INR 2,434 Cr to certain entities. The ED is now tracing the money trail to ascertain the proceeds of crime and determine whether these funds were misappropriated.
With this, Dream11 has become the latest RMG platform that the ED has clamped down on in the past month. In November, the agency’s Bengaluru unit carried out searches across Delhi and Gurugram in a money-laundering case linked to WinZO Games.
Thereafter, the directorate froze about INR 505 Cr in bank balances, bonds, FDs and mutual funds linked to the company under the Prevention of Money Laundering Act (PMLA). As per ED, the company allegedly misused KYC documents, blocked user accounts, deployed bots, limited customer withdrawals and parked funds overseas.
WinZO is also in dock for purportedly running real-money games in countries like the US, Brazil and Germany using its Indian platform despite a ban on online RMG in the country post August 2025. The aftermath also saw the agency arresting the gaming giant’s two cofounders, Saumya Singh Rathore and Paavan Nanda, under the PMLA.
On top of this, the ED also searched offices and residences linked to Pocket52 parent Nirdesa Networks and Gameskraft last month over allegations related to money laundering and manipulated game outcomes.
This follows the Centre banning all forms of real money gaming in the country in August this year. Following this, the real money gaming sector saw widespread layoffs and shutdowns. Many even pivoted to new business models to create alternate streams of revenues.
