ED raids 27 locations, including Dream11, in Rs 2,434 crore real estate fund fraud probe

New Delhi: The Enforcement Directorate (ED) has launched extensive searches at 27 locations across the country, targeting premises linked to the fantasy sports platform Dream11 and the industrial conglomerate Jai Corp, in connection with an alleged Rs 2,434 crore fraud involving the diversion of funds from a private real estate fund.

According to news reports, the operation, which unfolded over the past few days, stems from a broader money laundering investigation tied to irregularities that spanned from 2004 to 2017.

The raids covered 23 sites in Mumbai, two in Bangalore, one in Nashik, and one in Raipur, focusing on the Dream11 office, residences of co-founders Harsh Jain and Bhavit Sheth, and properties associated with Jai Corp promoter Anand Jain—Harsh Jain's father.

ED officials are probing financial links between Dream11's parent company, Dream Sports, and the alleged fraudulent activities at Jai Corp, including the misappropriation of investor funds through sister concerns.

Quoting sources, news reports stated that the agency is examining round-tripping of funds via shell companies in tax havens, creation of dubious invoices, and unsecured loans disguised as losses using fabricated documents.

At the heart of the case is the 'Urban Infrastructure Opportunities Fund,' a SEBI-registered venture capital fund managed by entities like Urban Infrastructure Venture Capital Ltd (UIVCL) and Urban Infrastructure Trustees Ltd (UITL), which mobilised funds from the public between 2006 and 2008 for real-estate projects in Mumbai and beyond.

Investigators allege that Jai Corp and its affiliates diverted these investments to sister firms, defrauding investors, including public-sector entities, and causing substantial losses. The probe extends to international angles, including fraudulent operations in private real estate funds based in Mauritius and the Jersey Channel Islands, improper trading in futures of Reliance Petrochemical, unlawful transfers of bank loans to Mauritius and Sharjah in the UAE, and even questionable exports to New South Wales, Australia, and California, USA.

The ED's actions follow a Central Bureau of Investigation (CBI) First Information Report (FIR) filed in February, prompted by a Bombay High Court directive to form a Special Investigation Team (SIT) led by IPS officer Sarah Sharma.

The CBI case was initiated based on complaints from activist Shoaib Richie Sequeira, who approached Mumbai's Economic Offences Wing (EOW) in 2021 and 2023, alleging systemic misuse of public funds for personal gains. The FIR invoked sections of the Indian Penal Code related to criminal conspiracy, cheating, forgery, and using forged documents.

Dream11, once a prominent sponsor of the Indian cricket team until its BCCI association ended in August amid new regulations on real-money gaming, has not issued an official statement on the raids.