Online gaming companies sent Rs 4,000 crore abroad: ED
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The ED said in a statement that the searches were carried out in several states under various sections of the Foreign Exchange Management Act (FEMA). During this, 55 bank accounts linked to online gaming companies were seized, in which Rs 19.55 lakh and $ 22,600 in cash were seized.
Financial probe agency Enforcement Directorate (ED) on Wednesday said it has detected illegal remittances of around Rs 4,000 crore in a nationwide search operation against online gaming companies registered abroad and operating in India. The ED said in a statement that the searches were carried out in several states under various sections of the Foreign Exchange Management Act (FEMA). During this, 55 bank accounts linked to online gaming companies were seized, in which Rs 19.55 lakh and $ 22,600 in cash were seized. The probe agency had conducted searches on May 22-23 at 25 locations located in Delhi, Gujarat, Maharashtra, Madhya Pradesh and Andhra Pradesh.
During this, it was found that these online gaming companies and websites were registered in small island countries like Curacao, Malta and Cyprus. However, all these companies were related to such accounts opened in India under fake names which have nothing to do with online gaming. The ED said, the amount collected from common people through online gaming was being diverted to various bank accounts and finally sent abroad. Import of services and products was said to be the purpose of this remittance.
The probe agency said that around Rs 4,000 crore was sent abroad in the name of payment against imports. Along with this, it clarified that under the FEMA Act, 1999, income earned from racing, horse riding or any other hobby cannot be repatriated abroad. ED said that some people associated with gaming companies had opened hundreds of companies in the name of their employees. Under their guise, the income earned from online gaming was being sent abroad.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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