ED Raids Dream11, Jai Corp in ₹2,434-Crore Fraud Case

The Enforcement Directorate (ED) on Friday carried out searches at more than 25 locations across the country in connection with an alleged Rs 2,434-crore financial fraud linked to industrialist Anand Jaikumar Jain, a director of Jai Corporation Ltd, officials said.

The probe relates to alleged irregularities in a real estate investment fund, including the diversion of bank loans to offshore entities in tax havens and fraudulent trading activities. The searches covered premises linked to Jain, Jai Corporation Ltd, its sister concerns, and a business partner.

In Mumbai, the ED searched 23 locations, including Jain’s Peddar Road residence and the registered and corporate offices of Jai Corp. The agency also raided the offices of Urban Infrastructure Venture Capital Ltd and Urban Infrastructure Trustees Ltd in Nariman Point.

Among the premises searched were offices linked to Dream Sports, the parent company of the fantasy sports platform Dream11, as well as those associated with its co-founder Bhavit Sheth, Harsh Jain, son of Anand Jain, Anand Jain himself, his company Jai Corp Ltd, and certain real estate ventures in Bengaluru, as part of the money-laundering investigation.

Sources said the agency also recorded preliminary statements of Bhavit Sheth, Anand Jain, and Harsh Jain during searches conducted at their residences. Financial links between Dream Sports and the entities linked to Jai Corp are also a focus of the investigation.

Following the enactment of the new online gaming law, Dream11 had shut down its core real-money fantasy sports operations in August and shifted to a free-to-play model supported by advertisements and sponsorships.

The searches were carried out at four other locations outside Mumbai—one in Nashik, two in Bengaluru, and one in Raipur—under the provisions of the Prevention of Money Laundering Act (PMLA). Officials said financial records and digital evidence were being examined to trace the money trail and identify alleged proceeds of crime.

Jai Corporation Ltd was not immediately available for comment.

The ED action follows a case registered by the Central Bureau of Investigation (CBI) earlier this year, based on directions from the Bombay High Court, which is investigating allegations that investors were defrauded of Rs 2,434 crore through a real estate investment scheme known as the Urban Infrastructure Opportunities Fund. The CBI has alleged that large sums of money were siphoned off, bank loans were diverted to offshore entities in tax havens, and sophisticated mechanisms such as forged invoices and layered transactions were used to conceal the trail of public funds.

On February 18, the CBI registered an FIR against Jain, Jai Corp, its sister firms, and business partner Parag Shantilal Parekh under multiple sections of the Indian Penal Code, including criminal conspiracy, cheating, forgery, and using forged documents as genuine evidence in financial dealings. The FIR was based on complaints filed by activist Shoaib Richie Sequeira in December 2021 and April 2023, alleging that funds mobilised from the public for real estate ventures were diverted for personal enrichment and other unauthorised purposes.

Following the Bombay High Court’s order on January 31, CBI conducted a detailed probe into the complex web of transactions. According to the allegations in the FIR and related court documents, Jain and his associates are accused of creating entities such as Urban Infrastructure Venture Capital Ltd and Urban Infrastructure Trustees Ltd, and soliciting funds amounting to Rs 2,434 crore from the public between May 2006 and June 2008 for investment in real estate projects in Mumbai and other cities. Though these firms were registered with the Securities and Exchange Board of India (SEBI) and touted as legitimate investment vehicles, the CBI alleges that significant portions of the funds were diverted to sister concerns and shown as losses over several years using false and fabricated documents to justify reduced valuations and alleged benami land transactions.

The investigation alleges that Jain, along with Parag Shantilal Parekh and their associates, diverted funds collected from investors, as well as bank loans totalling Rs 3,252.11 crore taken by Navi Mumbai SEZ Pvt. Ltd. in 2006–07 and Rs 686 crore availed by Mumbai SEZ Ltd. in 2003–04, for fraudulent trading in futures of Reliance Petrochemicals Ltd. Officials allege these trades were executed without disclosure or investor consent, allowing the accused to generate unlawful gains at the expense of public investors.

The CBI probe further alleges that Jain, Parag Shantilal Parekh, and their associates diverted and laundered a foreign currency loan of Rs 98.83 crore, availed by Navi Mumbai SEZ Pvt. Ltd. in 2008–09, to Mauritius. The accused reportedly floated corporate entities abroad to facilitate the diversion of loans obtained in India, as part of a larger criminal conspiracy to channel funds overseas for unauthorised purposes.

The FIR further states that between 2010 and 2017, fraudulent exports were made to New South Wales, Australia, and California, USA, using fictitious invoices and documents. The alleged beneficiaries include Sarbags Pty Ltd in Australia and Assurance Products Corporation in the United States. Officials claim the exports were used as a mechanism to divert funds for the personal use of Jain and his associates, highlighting the multi-layered nature of the alleged fraud.