ED raids Haryana firm linked to illegal betting, freezes ₹284 crore assets

ED has frozen ₹284 crore worth of deposits and shares of Haryana-based Probo Media Technologies in a money laundering probe linked to illegal online betting and gambling through its app and website

The Enforcement Directorate (ED) on Tuesday and Wednesday raided four locations in Gurugram and Jind districts belonging to Haryana-based Probo Media Technologies Pvt. Ltd, and froze fixed deposits and shares worth over ₹284 crore, PTI reported.

 

The action, taken under the anti-money laundering law, is part of an ongoing investigation into alleged cheating through illegal online gambling and betting, the agency said on July 10.

 

In a statement, the ED said it carried out searches over two days targeting the company and its promoters, Sachin Subhaschandra Gupta and Ashish Garg. The firm operated a mobile app and website under the name ‘Probo’.

 

Multiple FIRs lodged against firm

The money laundering investigation is based on several First Information Reports (FIRs) filed against the company and its promoters in Gurugram and Palwal (Haryana), and Agra (Uttar Pradesh).

 

According to the ED, complainants alleged they were “cheated” and were “dishonestly” offered a money-making scheme based on simple ‘yes’ or ‘no’ questions. However, the actual set-up allegedly encouraged gambling by enticing users to invest more for higher potential returns.

 

The company and its promoters have not yet responded to the allegations. 

Gambling disguised as skill-based gaming

The agency’s probe found that the platform misled users into believing it was a legitimate, skill-based game, when in fact it operated on a betting model where outcomes were determined purely by chance.

 

The firm described its model as ‘opinion trading’, suggesting that participants required skill or knowledge to play.

 

“However, analysis of games shows that all the games can be answered with a ‘Yes or No’ and hence, there are only two possible outcomes, which makes it indistinguishable from gambling/betting, resulting in loss of hard-earned money of the users,” the ED said in its statement.

Concerns over minors, misleading ads

The ED also stated that the app lacked safeguards to prevent minors from registering. There was no proper Know-Your-Customer (KYC) process, and new users were allegedly lured through misleading advertisements — including some related to election-based opinion trading.

 

The agency revealed that the company had received ₹134.84 crore by issuing preference shares to foreign investors based in Mauritius, the Cayman Islands and other jurisdictions.

 

“The searches resulted in seizure of incriminating documents and digital data. Investment in FDs and shares amounting to ₹284.5 crore and three bank lockers have been frozen during the searches,” the ED added. 

Statement from Probo Media Technologies

In a statement, the company said, "In light of recent developments, we would like to assure all stakeholders and the public that Probo is cooperating with law enforcement authorities in the ongoing inquiries. As pioneers of a nascent-yet-transformative technology in India's digital landscape, we remain confident that our commitment to compliance and innovation will help us emerge stronger through this process. We have complete faith in India's robust regulatory framework and its vision for responsible tech innovation."

 

It added, "Probo is an innovative skill-based platform. It provides India’s leading information marketplace that democratises the trading. With over 4.2 crore users, Probo has ensured better access to wealth creation that traditional financial markets have not been able to provide to the general public."

 

The company further said, "We reiterate that Probo adheres to all applicable laws and regulations and maintains the highest standards of compliance. User safety and trust remain our top priorities. We sincerely appreciate the continued support of our community and will provide updates as appropriate."