Dream11 Offices Raided Amid Rs 2,434-Crore Real Estate Fund Money Laundering Probe

The Enforcement Directorate (ED) conducted a series of searches at 27 locations across the country on Friday, including the offices of the online fantasy gaming platform Dream11 and premises linked to its co-founders Harsh Jain and Bhavit Sheth. The searches are part of a money laundering investigation, according to several media reports.

The investigation centers around the alleged fraudulent diversion of funds from a Rs 2,434-crore private real estate fund. The case involves multiple accused individuals and entities, including private firm Jai Corp Ltd, its former promoter Anand Jain, and directors and promoters of related companies.

The ED’s probe is based on an FIR registered by the Central Bureau of Investigation (CBI) on February 18, following directions issued by the Bombay High Court. According to the FIR, the alleged irregularities occurred between 2004 and 2017. Officials reportedly suspect that some public sector entities also suffered losses after investing in the fund.

Searches were conducted at 23 locations in Mumbai, as well as at two locations in Bengaluru and one location each in Maharashtra’s Nashik and Chhattisgarh’s Raipur. Dream11, co-founded by Harsh Jain and Bhavit Sheth, was previously the jersey sponsor of the Indian cricket team. The BCCI ended its association with the company in August following the enactment of a law banning real-money gaming.

The CBI case stems from a January 31 order of the Bombay High Court and is based on complaints earlier filed with Mumbai police’s Economic Offences Wing in 2021 and 2023. In February, the CBI formed a Special Investigation Team led by IPS officer Sarah Sharma to examine the allegations. The case was registered under Indian Penal Code sections related to criminal conspiracy, cheating, and forgery.

According to the complaint cited in the FIR, two entities, Urban Infrastructure Venture Capital Ltd and Urban Infrastructure Trustees Ltd, were established between 2006 and 2008 to raise funds under the Urban Infrastructure Opportunities Fund for real estate projects. The complainant alleged that funds raised from the public were diverted through investments and unsecured loans to sister concerns, resulting in losses that were allegedly shown using false documents.

The FIR also references alleged irregularities involving private real estate funds in Mauritius and the Jersey Channel Islands, trading in futures of a petrochemical company, and the diversion of bank loans overseas. The investigation is ongoing, and the ED and CBI are working to uncover the full extent of the alleged financial misdeeds.