Mumbai FIR key to ED’s pan-India dabba trading investigation

Cash and jewellery seized by the ED; Luxury watches also seized

An illegal online betting case registered at Mumbai's NM Joshi Marg police station has emerged as a crucial link in a wider Enforcement Directorate (ED) probe into an alleged pan-India syndicate involved in ‘dabba trading' - an illegal method of trading outside of official stock exchanges - and online betting operations spanning multiple cities, including Mumbai, the agency said. A prosecution complaint was filed on December 22 before a Special PMLA Court in Indore against the syndicate.

The agency said its investigation, initiated on the basis of an FIR registered by the Indore Police, revealed an interconnection with an earlier FIR registered at NM Joshi Marg police station in Mumbai.

The Mumbai case pertains to an illegal online betting racket, registered under Sections 419, 420, 465, 468, and 471 of the Indian Penal Code, provisions of the Maharashtra Gambling Prohibition Act, and Sections 66(C) and 66(D) of the Information Technology Act. The Mumbai Police have already filed a charge sheet in the said case.

A building where ED conducted raids. PICS/BY SPECIAL ARRANGEMENT

The ED said the Mumbai FIR proved significant in uncovering a larger, technologically manipulated ecosystem involving rigged trading platforms, unlawful betting websites, and a cross-border money laundering mechanism. According to the agency, clients were allegedly lured by being shown simulated trades and fabricated profits on platforms that had no links with recognised stock exchanges.

The agency further stated that its probe revealed the use of manipulated MT5 servers (infrastructure that brokers use to manage client accounts, process trades, connect to liquidity, and provide market data for Forex, stocks, and other assets) to generate false trading outcomes, while parallel betting platforms allegedly operated clandestinely using anonymous user accounts, encrypted communication channels and cash-based settlements. The proceeds generated from these activities were allegedly layered through mule bank accounts and routed through offshore entities, including those based in Dubai.

According to the ED, proceeds of crime amounting to '404.46 crore have been identified so far. The agency has provisionally attached assets worth '34.26 crore, comprising immovable properties, cash, precious metals, luxury watches, jewellery, and cryptocurrency holdings. Searches conducted during the investigation also led to the seizure of substantial cash, silver bars and gold.

ED officials said the case underscores how illegal online betting operations can evolve into complex financial crimes involving fake trading platforms and international money laundering. Investigations are underway to identify additional beneficiaries and expand the money trail, the agency said.

ED advisory to public

>> Verify trading or investment platform is registered with SEBI; unregulated dabba trading applications do not provide legal protections and often lead to financial loss

>> Remain cautious of platforms operating on privately controlled or unverified MT5 servers; such systems are usually designed to manipulate outcomes

>> Avoid illegal betting websites as these expose users to legal consequences, misuse of personal, and financial data

>> Never allow personal bank accounts to be used by others; mule accounts are frequently utilised for laundering proceeds of crime and the account holder becomes liable under PMLA.

>> Any suspicious platform offering unrealistic returns, operating exclusively through encrypted messaging applications or soliciting deposits through unknown or unofficial channels should be reported to the nearest law enforcement or cybercrime authority