Published: 10th Nov, 2023
Context:
Ministry of Electronics and Information Technology (MeitY) issued blocking orders against 22 illegal betting apps and websites.
Key Highlights-
- The Enforcement Directorate (ED) conducted raids on Mahadev Book in Chhattisgarh for alleged money laundering under the Prevention of Money Laundering Act (PMLA).
- Illegal Betting websites including ncluding Mahadev Book Online and Reddyannaprestopro have been banned, at the Enforcement Directorate's request, following an investigation into illegal betting app syndicates.
Online Betting Apps:
- Potential
- Convenience and Accessibility: Online betting apps offer the convenience of placing bets from anywhere, at any time, using smartphones or other devices connected to the internet.
- Entertainment and Enjoyment: For many users, these apps provide a form of entertainment, allowing them to engage in sports betting, online casinos, and other forms of gambling.
- Potential Economic Opportunities: Some individuals consider online betting as a way to earn money or gain profit through strategic gambling.
- Technological Advancements: These platforms leverage cutting-edge technology, offering a user-friendly interface, live streaming, and a wide array of betting options, creating an engaging experience for users.
- Risks:
- Addictive Nature: The convenience of these apps might lead to addiction and compulsive behavior, resulting in financial loss, strained relationships, and adverse
mental health impacts.
- Illegal Activities: There have been instances where illegal betting operations occur through unregulated apps, leading to money laundering and other illicit activities.
- Financial Risks: Users can incur substantial financial losses due to the addictive and high-risk nature of gambling, leading to potential debt and financial instability.
- Regulatory Concerns: Regulatory frameworks and oversight vary across different jurisdictions, leading to concerns about the lack of uniform standards and consumer protection
Enforcement Directorate (ED):
- It was established as ‘Enforcement Unit’ in 1956 under the Department of Economic Affairs, for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
- Today, Directorate of Enforcement is a Multi-Disciplinary Organization mandated with the task of enforcing the provisions of two special fiscal laws – Foreign Exchange Management Act, 1999 (FEMA) and Prevention of Money Laundering Act, 2002 (PMLA).
- Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above 1 crore, the ED steps in.
- The ED can also carry out search (property) and seizure (money/documents) if it suspects money has been laundered.
- Since the PMLA was enacted only in 2005, any ill-gotten property acquired before the year 2005 has no case under PMLA.
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