ED raids at 25 locations for alleged forex violations by gaming apps

By Kevin Colleran On May 25, 2023

The Enforcement Directorate (ED) on Wednesday conducted fresh searches at 25 locations for alleged forex violations by gaming apps.

“Remittance of Rs 4000 crore send in the guise of payments for import of good and services,” stated ED.

The searches were carried out under the provisions of FEMA, 1999 in Delhi (11), Gujarat (7), Maharashtra (4), Madhya Pradesh (2) and Andhra Pradesh (1) in relation to investigation being done against foreign registered.

Online Gaming companies/websites operating in India. These online gaming companies/websites are registered in small island countries like Curacao, Malta and Cyprus. However, all of them are linked to Indian Bank Accounts opened in the name of proxy persons who have no links with online gaming activity.

“The amount so collected from general public through gaming websites is then routed through multiple bank accounts and finally remitted out of India by mis-declaring the purpose of remittances against import of services / goods. Remittances out of the income from racing/riding etc., or any other hobby are not allowed under the provisions of FEMA, 1999,” ED said in a press release.

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