Hyderabad: The Directorate General of GST Intelligence (DGGI) Hyderabad unit busted an online gaming racket with an estimated nationwide turnover of ₹5,000 crore, arresting two key accused after coordinated raids.
According to an official statement, DGGI officers carried out simultaneous searches in Hyderabad, Delhi, and Mumbai. During the operation, investigators probed allegations of large-scale tax evasion, illegal transactions, and hawala-linked money transfers. As a result, officials seized key documents, electronic devices, and bank transaction records linked to the network.
Officials identified the arrested persons as V. S. Prabhu Kumar from Mumbai and Raja Sekhar Reddy from Hyderabad. Investigators said Prabhu Kumar founded VeGoFin Digital Solutions Private Limited, which allegedly played a major role in the online gaming operations.
DGGI probes money laundering angle in online gaming racket
Meanwhile, investigators identified Raja Sekhar Reddy as the alleged mastermind behind the racket. Preliminary findings showed that the network operated betting and online gaming platforms using foreign servers, shell companies, and fake accounts. Through these methods, the accused allegedly routed large volumes of funds.
Further, officials said they were examining violations of GST laws and probing the case from a money laundering angle. At the same time, surveillance continued on other key individuals linked to the network. DGGI officers warned that enforcement action against illegal online gaming activities would intensify nationwide.