ED conducts raids on casino dealers in Hyderabad over violation of FEMA

The Enforcement Directorate on Wednesday launched fresh raids on casino dealers in Hyderabad over violation of Foreign Exchange Management Act (FEMA).

Hyderabad:The Enforcement Directorate (ED) on Wednesday conducted raids at eight places in Hyderabad belonging to two suspects —Praveen Chikoti in Saifabad and Madhav Reddy from Bowenpally — and one place in Andhra Pradesh, and reportedly unearthed several instances of violation of the Foreign Exchange Management Act (FEMA).

According to ED sources, Chikoti and Madhav Reddy are involved in ‘All In’ Casino Vegas by Big Daddy at Hotel Mechi Crown Jhapa in Nepal where they organize high-stakes gambling for Indians who prefer to indulge in the safety of a neighboring country.

According to the sources, Praveen and Madhav Reddy facilitate the transfer of the stakes at the casino, running into lakhs of rupees, through hawala channels, thus allegedly violating FEMA rules. The sources said that the duo had utilized the services of some agents to attract customers and take them to Nepal. The agents reportedly charge Rs 3 lakh per head for a four-day package which includes flight charges, food, hotel stay, drinks, and entertainment.

These customers hail from Guntur, Vijayawada, Nellore, Hyderabad, and Visakhapatnam, the sources said. It is pertinent to mention here that Praveen had earlier been arrested in an extortion case in 2017. According to ED sources, Praveen organized a high-stakes game on the intervening night of June 11 and 12, word of which leaked, resulting in the ED raids on Wednesday.

ED sources also claimed that top Tollywood and Bollywood celebrities attended the Nepal Casino. The promotional videos made with heroines who had gone to the casino have now become viral on the net. It is reported that the ED is inquiring about the payments paid by the casino operators to the movie stars and other financial transactions related to the promotions are under scanner.