DGGI Uncovers Massive Rs 5,000 Crore Illegal Gaming-Fintech Network in Hyderabad
The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has made a significant breakthrough by uncovering an alleged illegal gaming–fintech syndicate with an estimated value exceeding Rs 5,000 crore. This sophisticated network operated through online real-money gaming platforms supported by a complex infrastructure of fintech companies, shell entities, and rented bank accounts designed to obscure financial trails.
Tracking the Digital Footprint: Key Platforms and Shell Entities
Investigators developed the case based on specific intelligence inputs, meticulously tracking two primary online gaming platforms: funinmatch360.com and racejeet247.com. By following the money trail associated with these real-money gaming operations, officials identified two shell entities that served as critical nodes in the financial network: Oceanique Web Solutions Pvt Ltd and Webwin Solutions Pvt Ltd. These companies allegedly received substantial funds routed directly from the gaming platforms, according to DGGI sources.
Key Individuals and International Connections Under Scrutiny
The investigation has placed several individuals under the scanner, including Y S Prabhu Kumar and Raja Sekhar Reddy, who are founding directors of Wegofin Digital Solution and are allegedly linked to this extensive network. More intriguingly, investigators have identified an associate operating from Dubai, described as a mastermind behind the syndicate. His exact identity remains unconfirmed as authorities continue their probe into his role and connections.
Fintech Facilitation and GST Evasion Tactics
The network reportedly involved multiple fintech players, including payment aggregators, payment gateways, and third-party technology service providers. These entities allegedly enabled transactions while deliberately obscuring audit trails. DGGI sources revealed that fintech companies were "circumventing GST payments on online money games (actionable claims)" by creating payout escrow accounts and systematically "obliterating money trails for audit purposes."
To project legitimacy, the syndicate created a layered network of shell entities and rented accounts, making the money flow appear as genuine business activity. The probe is examining how these routing structures facilitated the movement of large fund volumes while complicating end-to-end traceability.
Technology Service Providers and API Exploitation
Shady technology service providers (TSPs) posing as legitimate fintech companies are also under intense scrutiny. These entities allegedly exploited banks' payout APIs (application programming interfaces) to move substantial sums without regulatory oversight. These APIs, typically designed for bulk automated transfers to employees or vendors, can enable transactions without OTP or manual verification when manipulated by unregulated players presenting themselves as genuine customers.
The investigation continues to unravel the full extent of this sophisticated operation, highlighting significant vulnerabilities in digital financial systems and regulatory frameworks.
