The Enforcement Directorate has launched a comprehensive money laundering investigation against 29 high-profile celebrities, including Telugu cinema stars Vijay Deverakonda and Rana Daggubati, for allegedly promoting illegal betting applications.
The federal agency filed an Enforcement Case Information Report under the Prevention of Money Laundering Act following five separate FIRs registered across Andhra Pradesh and Telangana. The celebrities face serious accusations of violating the Public Gambling Act of 1867 through their promotional activities.
The inquiry began with a complaint from 32-year-old entrepreneur PM Phanindra Sarma in March. He felt compelled to take action after an eye-opening discussion with young people in his community on March 16. During that conversation, he learned that celebrity endorsements were fueling gambling addiction among the youth.
"Several young members of my community had been influenced to invest money in gambling platforms that were heavily promoted by social media influencers," Phanindra shared in his complaint. He revealed that these influencers were receiving substantial payments to endorse betting apps designed to entice users into gambling away their money.
In a personal twist, Phanindra admitted he had considered investing in one of these platforms himself but was saved by his family's warnings about the financial risks involved. This near-miss experience motivated him to take legal action.
The case encompasses a who's who of Telugu entertainment. Beyond Deverakonda and Daggubati, the heavyweight of the entertainment sector, veteran actor Prakash Raj, Manchu Lakshmi, Nidhi Agarwal, Pranitha Subhash, and Ananya Nagella also found themselves under investigation for the same.
The probe extends far beyond cinema, targeting popular TV personalities like Sreemukhi, digital influencers such as Harsha Sai, Shyamala, Varshini Sounderajan, and even YouTube channels like 'Local Boy Nani'.
The charges hence are so serious that they have been lodged in a FIR under a wide spectrum of serious legal provisions including Sections 318(4) and 112 read with 49 of the Bharatiya Nyaya Sanhita (BNS), Sections 3, 3(A), and 4 of the Telangana Gaming Act and Section 66(D) of the Information Technology Act.
The ED officials suspect that through such celebrity endorsements, money laundering on a huge scale took place. The platforms that are being questioned are Junglee Rummy, A23, JeetWin, Parimatch, and Lotus365 that the platforms concealed gambling business with role playing games being skill-based games.
It has been financially crippling to certain users. One of the users claimed he lost more than 3 crore INR, having been caught up in the advertising with big names, which makes the filthy effect of such celebrity endorsements on reality clear.
Some of the accused celebrities have rushed to release a clarification.. Deverakonda maintains his contract was strictly for "skill-based games," which Supreme Court rulings have distinguished from gambling. Daggubati's team insists his involvement ended in 2017, while Prakash Raj revealed he didn't renew his 2016 contract and later objected when companies used his old promotional videos without permission.
The case shows an emerging regulatory interest regarding the presence of stars and their tendencies in promoting. The Special Investigation Team to address online betting has been announced by Telangana Chief Minister Revanth Reddy, which indicates that online betting is becoming a government priority.
The celebrities are questioned in the following weeks. This landmark case may set some essential precedents concerning celebrity accountability in endorsing, especially in favour of
those sites that confuse the boundary between ability and chance.
To the digital generation who religiously follow these stars, it is a reminder that celebrity endorsements are not always what they are on the surface.
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