The properties of two casino organisers in Hyderabad were raided by the Enforcement Directorate to check for alleged hawala transactions. The two men, Chikoti Praveen and Madhav Reddy, have claimed their casino business is legal.
Unusually large sums of money paid to actors for casino endorsement led the Enforcement Directorate to take a look at the 'business' and its handlers.
Some of the big-volume financial transactions may have gone via the hawala route, Enforcement Directorate sources have said. Hawala transaction refers to a financial crime when money changes hands without entering the formal banking system.
Mr Praveen, whose social media profiles are sprinkled with visuals that show a flamboyant lifestyle, from posing with exotic animals to partying with Bollywood stars, used influential connections to promote their casino business, investigators said.
The probe agency raided at least eight properties of the casino organisers. They two allegedly violated provisions of the Foreign Exchange Management Act, or FEMA.
The two allegedly took casino bets on behalf of Indians in Nepal's Hotel Mechi Crown and helped in transferring stakes to the casino. "The high-stakes gambling was probably organised for Indians in the safety of the neighbouring country," an officer who asked not to be named said.
Mr Praveen allegedly charged anywhere between Rs 5 lakh and Rs 10 lakh person for a so-called "four-day package".
Police raid the farmhouse of Chikoti Praveen, a casino organiser accused of hawala dealings
Most of the customers are from Andhra Pradesh and Telangana. The Enforcement Directorate got wind of the alleged money laundering operation between June 10 and 13.
The investigators during analysis of WhatsApp group chats and Mr Praveen's laptop are learnt to have stumbled upon the names of three ministers, 15 MLAs and 250 other customers, some of them gold dealers.
Andhra Pradesh former minister Balineni Srinivas Reddy has said he does visit casinos and even admitted that he would gamble and play cards, but denied any association with Mr Praveen or his alleged hawala dealings.
Telangana Labour Minister Malla Reddy, who runs several engineering and medical colleges, has said he has no idea how an MLA sticker that was allotted to him appeared on the casino organiser Madhav Reddy's car. He has also denied any links with Mr Praveen.
The casino organisers allegedly took their VIP clients to Goa, Nepal and Indonesia, and charged between Rs 5 lakh and Rs 15 lakh.
The names of actors who have been promoting Mr Praveen's casino events are in his mobile phone contacts, investigators have said. Mr Praveen has also shared photos of him with politicians and actors.
The Forest Department, too, raided Mr Praveen's farmhouse in Telangana's Kadthal to check if he has held any endangered or protected animals captive, as he has posted several photos on his Instagram profile posing with reptiles. The officials said they have found dozens of exotic animals on his farm.
The probe agency has called both Mr Praveen and his aide Mr Reddy for questioning on Monday.
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