The Enforcement Directorate (ED) has launched a major money laundering probe that now touches fantasy gaming unicorn Dream11, its parent Dream Sports, and cofounder Bhavit Sheth, as investigators follow a ₹2,434 crore fraud trail linked to industrialist Anand Jain’s Jai Corp Limited. The action is part of a broader 2025 crackdown where multiple gaming and fintech startups have come under ED scrutiny over alleged proceeds of crime, FDI violations, and regulatory arbitrage.
What ED Did in the Dream11–Jai Corp Case
- ED conducted searches at more than 30 locations on Friday under the Prevention of Money Laundering Act (PMLA), including Dream11’s Mumbai office and premises linked to Bhavit Sheth.
- Over 20 locations in Mumbai and additional sites in Nashik, Bengaluru and Raipur tied to Anand Jaikumar Jain (director of Jai Corp), Jai Corp subsidiaries and associated entities were also searched.
- The case stems from a CBI FIR registered after the Bombay High Court ordered a special investigation team (SIT) probe into alleged large-scale financial irregularities involving Jai Corp.
Investigators are examining suspected financial links and fund flows between Jai Corp, Dream Sports (Dream11’s parent) and Bhavit Sheth, after detecting monetary transactions that may be part of the alleged proceeds of crime. The core question: whether misappropriated funds from Jai Corp were layered through connected entities, including tech and gaming firms, to disguise their origin.
Background: The ₹2,434 Crore Jai Corp Fraud Allegations
The CBI FIR and court-directed SIT are looking at multiple strands of alleged wrongdoing tied to Anand Jain and Jai Corp:
- A real estate investment fund fraud within India.
- Suspect dealings in private real estate funds based in Mauritius and Jersey.
- Improper trading in Reliance Petrochemical Limited futures.
- Diversion of bank loans to overseas entities in Mauritius.
- Fraudulent export transactions linked to New South Wales (Australia) and California (US).
The allegation is that Jai Corp, under Jain’s control, with subsidiaries and associates, siphoned off funds raised from investors and financial institutions, causing a loss pegged at ₹2,434 crore. ED’s current job is to trace the money trail, identify “proceeds of crime” and check if public or institutional money was routed through complex offshore structures and then into seemingly unrelated businesses, including online gaming.
Why Dream11 and Dream Sports Are Under the Scanner
While ED has not accused Dream11 of primary fraud in the Jai Corp matter, it reportedly found financial connections between Jai Corp entities and Dream Sports/Dream11 in the form of transactions that raised red flags under PMLA. These may include investments, loans, or payments that investigators suspect could be part of layered money flows.
The searches at Dream11’s office and Bhavit Sheth’s premises aim to:
- Seize documents, digital records, contracts and bank details.
- Map exact transaction routes between Jai Corp-linked entities and Dream Sports/Dream11.
- Establish whether Dream11 or its executives had any knowledge that funds received (if any) were tainted or were part of a laundering chain.
At this stage, ED’s action is exploratory and investigative. No chargesheet has been filed publicly against Dream11 in this specific case, and statements from the company or Sheth regarding these raids were not immediately available in mainstream reports.
Other Startups and Gaming Firms Facing ED Heat in 2025
The Dream11–Jai Corp searches are part of a wider 2025 enforcement wave where several high-profile digital and gaming startups have faced ED action.
WinZO and Gameskraft (Real-Money Gaming)
- ED has frozen assets worth about ₹523 crore linked to WinZO, Pocket52 parent Nirdesa Networks and Gameskraft, alleging cheating, manipulation and money laundering via online money gaming.
- Between November 18–22, ED’s Bengaluru office raided offices and residences in Delhi and Gurugram tied to WinZO and Gameskraft under PMLA, seizing devices and corporate data.
- For WinZO, the Directorate claims “proceeds of crime” worth around ₹505 crore were parked in bank balances, bonds, fixed deposits and mutual funds. Allegations include misuse of customer KYC/PAN data, algorithmic manipulation, impersonation, blocked accounts and fraudulent practices.
- In a later move, WinZO cofounders Saumya Singh Rathore and Paavan Nanda were reportedly arrested after summons and questioning at the Bengaluru zonal office, signaling escalation beyond freezing assets.
Gameskraft has also faced separate tax and enforcement scrutiny earlier, and ED’s actions now focus on escrow accounts and funds allegedly retained despite a nationwide ban on certain real-money gaming under the Promotion and Regulation of Online Gaming Act effective August 22, 2025.
What Comes Next in the Dream11–Jai Corp Probe
For the Dream11/Jai Corp-linked case, ED’s immediate steps will involve:
- Forensic analysis of seized documents and digital trails.
- Matching fund flows between Jai Corp entities, offshore structures and Dream Sports/Dream11.
- Coordinating with the CBI SIT that is already probing the core Jai Corp fraud across real estate funds, foreign vehicles and derivatives trades.
If ED establishes that funds linked to the Jai Corp fraud passed through Dream Sports or related entities and were knowingly accepted or further layered, it could:
- Attach or freeze assets deemed “proceeds of crime”.
- Summon senior executives for questioning.
- Eventually file a complaint (prosecution complaint under PMLA) before the special court.
If, however, transactions are shown to be arm’s-length with adequate documentation and no knowledge of taint, Dream11 may argue it is only a third-party recipient in the chain, not a culpable launderer.
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