The Central Bureau of Investigation (CBI) recently conducted extensive searches and raids across multiple locations, including the residence of former Chhattisgarh CM Bhupesh Baghel, in connection with the Mahadev online betting app scam. The raids spanned Chhattisgarh, Bhopal, Kolkata, and Delhi, targeting individuals associated with the betting app, including politicians, bureaucrats, and key functionaries. The operation led to the seizure of incriminating digital and documentary evidence.
The Mahadev betting app scam came to light after reports of extravagant expenses by its key promoter, Sourabh Chandrakar, who allegedly spent over INR 200 crore on a Dubai wedding in 2023. The Enforcement Directorate (ED) initiated action and later froze funds worth INR 1,700 crore linked to the case. The app, which operated from Dubai, allowed real-time betting on various sports and amassed over 10 million users at its peak. Investigations revealed that transactions through shell companies were used to invest in the stock market, leading to suspicions of widespread financial irregularities.
The Chhattisgarh government handed over the case to CBI in August 2024, consolidating 77 FIRs filed against the app’s promoters and other accused individuals. The probe unveiled a large-scale operation that generated INR 240 crore daily through over 3,200 betting panels. The scam reportedly involved bribery amounting to INR 508 crore to shield key players from legal action. The CBI raids have further intensified scrutiny on political and financial entities tied to this illegal enterprise.
1. Understanding the Mahadev Betting App Model
1.1 Business Model and Revenue Streams
Mahadev Online Book was an illegal online betting platform operating out of Dubai. The app provided a real-time betting system for users to place wagers on various sports, including cricket, football, and tennis. Unlike traditional gambling platforms, Mahadev Book offered extensive credit-based betting services, allowing users to bet without immediate deposits, increasing its market penetration.
The platform generated revenue through commission-based earnings, taking a percentage from every bet placed. The estimated daily earnings reached INR 240 crore, facilitated through a network of over 3,200 panels across different regions. These panels were managed by sub-agents who acted as intermediaries, recruiting new users and handling transactions.
1.2 Founders and Operations
The Mahadev betting app was founded by Sourabh Chandrakar and Ravi Uppal, both of whom operated the business from Dubai. The founders utilized a sophisticated network of online transactions, offshore accounts, and cryptocurrency payments to launder money. They allegedly acquired protection from political figures and law enforcement agencies through bribery, allowing them to continue their operations without major disruptions.
2. Investigation and Legal Proceedings
2.1 Initial Investigations and ED’s Role
The Enforcement Directorate (ED) began its investigation into the Mahadev scam after tracing large financial transactions linked to the platform. In 2023, the agency blocked the app and froze INR 1,700 crore worth of assets. Investigators found that the promoters were using shell companies to route illicit earnings into the stock market and real estate projects.
2.2 CBI’s Involvement and Raids
In August 2024, the Chhattisgarh government transferred the investigation to CBI, consolidating 77 FIRs filed across multiple locations. The agency formally registered a corruption case in January 2025 and intensified its probe. The CBI raids covered several cities, including Bhupesh Baghel’s residences in Raipur and Bhilai. Digital and documentary evidence was seized, further strengthening the case against those involved.
2.3 Political and Legal Repercussions
The case took a political turn when the Congress party accused the ruling BJP of using investigative agencies to target opposition leaders. Congress leaders stated that the CBI’s actions were politically motivated and aimed at intimidating Baghel ahead of key political events. Meanwhile, the BJP defended the investigation, stating that corruption must be addressed irrespective of political affiliations.
3. Financial Scale of the Mahadev Betting Scam
3.1 Estimated Proceeds of Crime
The Mahadev betting app scam is estimated to have generated over INR 6,000 crore in illegal earnings. The ED has so far attached assets worth INR 2,426 crore under the Prevention of Money Laundering Act (PMLA). The promoters allegedly rented 20 villas in Dubai to accommodate over 3,500 employees, highlighting the scale of operations.
3.2 Impact on the Indian Economy
The illegal betting network led to significant financial losses to the Indian economy, as a large portion of earnings was laundered through international channels. The app’s widespread reach also contributed to the rise of unregulated gambling, affecting millions of users who lost money.
4. Learning for Startups and Entrepreneurs
4.1 Ethical Business Practices
Startups must operate within the legal framework to ensure long-term sustainability. Engaging in unethical practices, such as money laundering or illegal betting, can lead to severe legal consequences.
4.2 Regulatory Compliance
Entrepreneurs in fintech and gaming sectors should ensure compliance with government regulations. Obtaining proper licenses and adhering to taxation laws can prevent legal issues.
4.3 Importance of Transparent Financial Transactions
Maintaining clear financial records and avoiding shell companies help in building trust and credibility in the industry. Transparency is key to gaining investor and consumer confidence.
4.4 Risks of Political and Legal Entanglements
Businesses must be cautious about political affiliations and influence in their operations. Unlawful dealings with government officials can lead to investigations, reputational damage, and financial penalties.
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