Dream11 offices raided in ED money laundering probe linked to Rs 2,434-cr real estate fund

The Enforcement Directorate on Friday carried out searches at 27 locations across the country, including the office of online fantasy gaming platform Dream11 and premises linked to its co-founders Harsh Jain and Bhavit Sheth, as part of a money laundering investigation, according to several media reports.

The investigation relates to the alleged fraudulent diversion of funds from a Rs 2,434-crore private real estate fund. The case involves several accused individuals and entities, including private firm Jai Corp Ltd, its former promoter Anand Jain, and directors and promoters of related companies.

The ED’s probe is based on an FIR registered by the CBI on February 18, following directions issued by the Bombay High Court. According to the FIR, the alleged irregularities took place between 2004 and 2017. Officials reportedly said the agency suspects that some public sector entities also suffered losses after investing in the fund.

Searches were conducted at 23 locations in Mumbai, as well as at two locations in Bengaluru and one location each in Maharashtra’s Nashik and Chhattisgarh’s Raipur.

Dream11, whose co-founders include Harsh Jain and Bhavit Sheth, was previously a jersey sponsor of the Indian cricket team. The BCCI ended its association with the company in August following the enactment of a law banning real-money gaming.

The CBI case stems from a January 31 order of the Bombay HC and is based on complaints earlier filed with Mumbai police’s Economic Offences Wing in 2021 and 2023. In February, the CBI formed a Special Investigation Team led by IPS officer Sarah Sharma to examine the allegations. The case was registered under Indian Penal Code sections related to criminal conspiracy, cheating and forgery.

According to the complaint cited in the FIR, two entities, Urban Infrastructure Venture Capital Ltd and Urban Infrastructure Trustees Ltd, were floated between 2006 and 2008 to raise funds under the Urban Infrastructure Opportunities Fund for real estate projects. The complainant alleged that funds raised from the public were diverted through investments and unsecured loans to sister concerns, resulting in losses that were allegedly shown using false documents.

The FIR also refers to alleged irregularities involving private real estate funds in Mauritius and the Jersey Channel Islands, trading in futures of a petrochemical company, and diversion of bank loans overseas.