In a major development that has drawn attention across India’s startup and online gaming ecosystem, the Enforcement Directorate (ED) carried out search operations at the office of fantasy sports platform Dream11 and multiple premises linked to its co-founder Bhavit Sheth. The action is part of an ongoing money laundering investigation connected to alleged financial irregularities amounting to ₹2,434 crore.
The raids were conducted at more than 30 locations across the country, with a significant concentration in Mumbai. Other cities where searches were carried out include Nashik, Bengaluru and Raipur. Premises linked to individuals associated with real estate firm Jai Corp Limited were also covered during the operation.
Investigation Under PMLA Gains Momentum
According to officials familiar with the matter, the searches were conducted under the Prevention of Money Laundering Act (PMLA). The agency is probing whether funds allegedly diverted from Jai Corp were routed through a network of companies, including entities connected to the technology and gaming sector.
The ED is examining financial transactions to identify possible layering of funds, use of shell entities and structured transfers that may have been designed to obscure the original source of money. Investigators are also reviewing bank statements, digital records and corporate filings seized during the searches.
Link to Jai Corp Financial Irregularities Case
The current probe stems from a First Information Report registered earlier this year following directions from the Bombay High Court. The court had asked the Central Bureau of Investigation to form a special investigation team to look into alleged large-scale financial misconduct at Jai Corp Limited.
The FIR reportedly highlights misuse of public funds, diversion of loans, and suspicious overseas transactions over several years. The ED’s involvement suggests that authorities believe proceeds of crime may have been generated and laundered through multiple channels, including cross-border routes.
Sources indicate that investigators are focusing on complex money trails involving real estate projects, foreign subsidiaries and round-tripping of funds through overseas jurisdictions.
Dream11 Under Regulatory Scanner
Dream11, one of India’s largest fantasy gaming platforms, has been a key player in the country’s rapidly growing online gaming industry. Co-founded by Harsh Jain and Bhavit Sheth, the company rose to prominence through aggressive user growth and high-visibility sports partnerships.
While the raids do not imply that the company or its founders have been charged with any wrongdoing at this stage, the inclusion of Dream11’s office and the personal premises of its co-founder indicates that investigators are examining possible financial links to the larger case.
Industry observers note that this development comes at a time when India’s real-money gaming sector is already facing tighter regulatory scrutiny following recent changes in tax and compliance norms.
What Lies Ahead
Officials are expected to analyse the documents and electronic data seized during the raids to determine whether any violations of money laundering laws have occurred. Further questioning of individuals linked to the case may follow based on the findings.
As the investigation continues, the case is likely to have broader implications for corporate governance, financial transparency and regulatory oversight within India’s startup ecosystem. More clarity is expected as enforcement agencies piece together the money trail and assess the extent of involvement, if any, of the entities under the scanner.