PRESS RELEASE

April 03, 2015

Statement issued by Shri Tom Vadakkan and Ms Amee Yajnik in the AICC briefing today:-

“India’s biggest ‘betting-cum-hawala racket’ running into over Rs.4,000 crore has been unearthed on 20th March, 2015 with clear linkages to BJP leaders and police machinery of the State and the thread of illegal betting, hawala and International money laundering reaching at the door steps of higher echelons of political and administrative executive.

Successive exposure of hawala rackets in Gujarat with complete inaction against the guilty raises serious questions about protection and encouragement to such hawala rackets by the Government.

FACTS

(i) On 20th March, 2015; Enforcement Directorate (ED) conducted raids on ‘Vaibhavi Farm, Sikanderpura, Vadodara, Gujarat’ to unearth a ‘World Cup 2015 Cricket Betting Racket’ worth over Rs.4,000 crore.

As per information, ED had been consistently issuing warning to Government of Gujarat and Gujarat Police regarding Gujarat being focal point of Nationwide betting and hawala rackets. Gujarat Government chose not to take any action. ED raid of 20th March came consequently at one place leading to unearthing of India’s biggest betting racket of over Rs.4,000/- crore.

Incidentally, racket unearthed was an International money laundering racket also.

(ii) ED was intercepting the phones of some of the main culprits of the betting-cum-hawala racket. There were four principal operators in Gujarat in addition to a London, UK based operator Sodhi and Delhi-based operator Paresh Bhatia. Operators in Gujarat were (a) Girish Patel @ Tomi Patel, a senior BJP leader of District Mehsana, (b) Kiran Mala of Pralahlad Nagar, Ahmedabad, (c) Dharmin Chauhan of Ahmedabad and (d) Chirag Parikh of Maninagar, Ahmedabad.

During interception of phones, ED has also found that multiple police officers of the ranks of Inspectors-General of Police as also many influential political persons were in touch with ‘satta betting operators’.

(iii) ED has also discovered that money was being transferred through a website registered in London, UK. Name of the website is ‘www.betfair.com’. For each login, £ 2,50,000 had been paid. Even at the time of raid, six logins had been received and Rs.12 crore were in account.

(iv) ED has also recovered about 100 mobile phones, 12 laptops and a few lakh rupees in cash from the spot.

(v) As per information, ED has found and submitted a report qua betting and transfer of Rs.20 crore for each Cricket match that have been illegally money laundered outside India. ED has also recovered laptops (as stated above) which reflect betting account transfer of 200 matches totaling over Rs.4,000 crore.

(vi) Shockingly, Ms RV Keni, Principal Officer of Enforcement Directorate, who conducted the raid on 20th March, 2015 was transferred on 22nd

March, 2015 and reverted to her parent Department of Central Excise.

(vii) ED has also unearthed the names, phone numbers and details of Nationwide ‘Bookies’ of betting-cum-hawala rackets. As per information, over 700 such names were recovered.

(viii) Officers of ED handed over the 16 accused detained alongwith 100 mobile phones, 12 laptops, details of all logins at www.betfair.com as also details of all the 700 bookies to Kishenganj Police Station under Vadodara Police Commissioner.

(ix) Shockingly, Gujarat Police merely registered an FIR under Sections 4 and 5 of the Gambling Act in Kishenganj Police Station late in the evening.

What is even more shocking is that a cursory remand of the accused was sought, which was denied and the accused granted bail on 21st March, 2015 itself.

(x) It is a clear-cut case of International money laundering, hawala and illegal betting attracting the provisions of the Foreign Exchange Management Act(Sections 3 and 4), Prevention of Money Laundering Act (Sections 3 and 4), Prevention of Corruption Act (Section 13), Gambling Act, Information Technology Act and Indian Penal Code (Sections 34, 120-B, 405, 409 and 420). Such ill-gotten money also has National security ramifications particularly in a sensitive State like Gujarat.

(xi) Even in the past, ED had unearthed a similar hawala racket on 22nd March, 2014 amounting to Rs.700 crore in Surat after carrying out raids at the residence of one Shri Afroz Fatta, a known BJP supporter.

As per ED officers then, fake import and exports documents were being shown for diamond consignments that never took place. These transactions were being done through private banks in Surat and money was being transmitted to Honkong and Dubai. In this regard, ED officials had told the press on April 22, 2014 as follows:-

“The money sent abroad through hawala was used for buying gold. This gold was later smuggled into the country. Some businessmen sent money abroad……”

ED had then stated that hawala racket exceeded Rs.1,000 crore and could extend to Rs.5,000 crore.

In light of these facts and open connections of accused with Bhartiya Janata Party and its Government and highest echelons of bureaucracy; Shri Narendra Modi, Smt. Anandi Ben Patel and others need to answer certain pertinent questions:-

(i) Why is India’s biggest ‘betting-cum-hawala racket’ running into over Rs.4,000 crore being brushed under the carpet by BJP Government?

(ii) Whose money, running into thousands of crores was being allegedly transmitted through hawala racket?

(iii) What is the source and ownership of this ill-gotten money?

(iv) Why was Principal Officer of ED i.e. Ms RV Keni, who conducted the raid on 20th March, 2015, transferred within 48 hours from ED and repatriated to the parent Department i.e. Central Excise?

(v) Was this hurried transfer and punishment awarded to Ms RV Keni in order to hush up this entire International hawala-cum-betting racket’?

(vi) What action has the Gujarat Government as also Government of India taken/propose to take against International money launderers and havala operators unearthed in the ED raids?

(vii) How did Gujarat become the focal point of such money laundering hawala rackets?

(viii) What action would be taken against over 700 Bookies spread across the country whose names have been unearthed in the ED raid?

(ix) Whether complete complacency of Government to one of the biggest hawala rackets being run under their nose and eyes points towards their complicity or indifference in upholding the law and checking nefarious elements in anti-National activities?

(x) What happened to the ED raid and unearthing of over Rs.1,000-5,000 crore hawala racket on 24th March, 2014 in Surat as described above?”