Delhi High Court Rules Cricket Betting Proceeds as 'Proceeds of Crime'

The Delhi High Court has declared profits from cricket betting as 'proceeds of crime' under the anti-money laundering law. The court's decision stems from a legal case involving a Rs 2,400 crore international cricket betting racket. The Enforcement Directorate previously issued orders against several individuals involved.

The Delhi High Court has determined that profits from cricket betting are considered 'proceeds of crime' under the Prevention of Money Laundering Act (PMLA). This ruling is based on the premise that the criminal taint attached to these profits from their origin persists through their eventual use, including in unsanctioned activities like unlicensed real estate operations.

The court, comprising Justices Anil Kshetarpal and Harish Vaidyanathan Shankar, rejected petitions challenging provisional attachment orders made by the Enforcement Directorate (ED) concerning a Rs 2,400 crore international cricket betting operation. The case underscores the breadth of the PMLA in addressing not just direct criminal transactions but also secondary activities stemming from those offenses.

The ED has been investigating large-scale hawala transactions and illicit betting activities via a UK-based website, Betfair.com. These operations involved using master and client IDs worth Rs 2.4 crore each, bought without due KYC processes. The funds were allegedly funneled abroad via unauthorized channels, further linking these activities to money laundering allegations.

(With inputs from agencies.)