GGN News Bureau
New Delhi 19th July-As part of a large-scale crackdown on illegal gambling on the internet and money laundering, India’s Enforcement Directorate (ED) has served summons to technology giants Google and Meta in relation to a multi-billion dollar illegal gambling fraud. The agencies have to appear for questioning on July 21, which is one of the highest-profile inquiries involving international tech platforms doing business in India.
As per reports, ED is investigating their potential involvement in hosting and promoting illegal betting apps which were said to be engaged in the laundering of black money using hawala networks and foreign shell companies.
The Scam
The case is about a syndicate of illegitimate betting websites that operated mainly from offshore servers, with the purpose of conducting betting on sports, casinos, and lottery-type games. The sites are alleged to have become huge hits in India, particularly on major sporting event days, through extensive advertising on electronic media.
The entire size of the illegal transactions has been pegged at more than $100 billion (approx. ₹8.3 lakh crore), and it is one of the biggest financial crimes being probed in Indian history.
The money earned was allegedly laundered through intricate money-laundering mechanisms using hawala operators, crypto wallets, and overseas accounts. Large portions of the money were further channeled back into India by presenting themselves as ad revenue or tech service payments.
Role of Google and Meta
The ED’s focus is on how these illegal apps were promoted and monetized using advertising tools provided by Google (via YouTube and Play Store) and Meta (via Facebook and Instagram). Investigators believe that the tech companies failed to properly vet advertisers and allowed illegal betting apps to reach Indian users through paid promotions and ad placements.
Officials are also probing if these companies have been paid via hawala channels or cryptocurrency by entities related to the betting operators.
Previously, the ED had raided premises in various locations in Delhi, Mumbai, Hyderabad, and Bengaluru that were associated with operators of these betting apps. These raids exposed digital records and bank transactions suggesting mass-scale financial discrepancies.
ED’s Tough Stand
The notice to Google and Meta marks an Indian government zero-tolerance policy toward foreign firms that are allegedly facilitating illegal financial transactions. The officials at ED have reiteratively stated that no platform, regardless of the size or the global nature of the platform, is beyond Indian jurisdiction.
The firms have been requested to clarify:
Due diligence procedures for advertisers.
Their internal reporting systems for alerting them of suspicious transactions.
Income generated from betting-related advertising accounts.
Traffic and click-through rate data from Indian users.
Legal Consequences
In case of being found complicit or negligent, Google and Meta may be penalized under the Prevention of Money Laundering Act (PMLA) and Information Technology Act, apart from enhanced content moderation conditions under India’s digital regulations.
The Ministry of Electronics and Information Technology (MeitY) is also reportedly keeping a close watch on the developments. Civil society organizations are demanding that stricter compliance requirements be placed on digital platforms in terms of financial advertising and customer protection.
A Wake-Up Call
The case could create a new benchmark in India’s regulatory paradigm, particularly with regard to global tech giants’ responsibility in financial offenses. It is likely to result in stricter digital advertisement regulations and real-time monitoring of fintech-related content.
All eyes are now on how Google and Meta react — and how India asserts its digital sovereignty in the presence of global tech influencers.
