Allegations of ₹700 Crore foreign currency laundering against Mohun Bagan sponsor

Photo – Google

Xtra Time Special Report : How the influence of betting is gradually creeping into Indian football, impacting clubs like Mohun Bagan and East Bengal, has not yet become clear to the common people. However, the shadow of this betting industry is gradually engulfing Indian football. Two historic clubs of India, Mohun Bagan and East Bengal, have recently been associated with betting apps as their sponsors. In recent months, these clubs’ football teams have been sponsored by surrogate agencies of betting apps. Mohun Bagan’s jerseys are adorned with the “Parimatch” app, which is a surrogate agency of a Cypriot betting company called Parimatch. On the other hand, East Bengal’s jerseys feature “Batery,” an agency that raises many doubts and questions.

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It can be observed on the Play Store that “Batery” is also a cricket betting app used in India, Pakistan, and Bangladesh.

Recently, the Directorate General of Goods and Services Tax Intelligence in Mumbai has lodged a serious complaint against this Parimatch app. The complaint alleges that they were smuggling a substantial amount of money (approximately 700 crores in Indian currency) abroad in the form of cryptocurrency from India. Multiple enforcement agencies have disclosed the presence of a network of around 350 such networks operating in and around Kolkata, sending money abroad in this manner. They have identified about 40 betting apps involved in sending money from abroad to operate in India.

Photo – Google

Recently, the Ministry of Information and Broadcasting has directed all news media and media organizations to refrain from accepting any advertising or promotion from such betting companies or their surrogate branches. Media houses are refraining from accepting advertisements due to government regulations. However, sports associations are becoming entangled in this web. Since these betting agencies are offering substantial sums of money as sponsorship, even smaller clubs are aligning themselves with them. Representatives of these clubs are getting involved in sponsorship deals with betting companies, which is leading to an increase in match-fixing incidents.

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While strict measures are being taken in southern states to curb the influence of such organizations, in other states, these organizations are operating freely. In many cases, people are shifting their allegiance from clubs like Mohun Bagan or East Bengal to apps like Parimatch, Dafa Bet, or 1XBET, which are solely based on gambling. Fantasy gaming apps like Dream11, which require knowledge and strategic thinking about players, are different from these Parimatch, Dafa Bet, or 1XBET type betting apps, which are more luck-dependent and solely about gambling. In India, gambling is banned, but these gaming apps are not.

Photo – Google

In the case of Mohun Bagan, the club’s budget is estimated to be over 70 crores at the moment, and renowned businessmen like Sanjiv Goenka are associated with the club. The amount of money involved in this Parimatch is unusually high. Sanjiv Goenka, who is investing substantial sums of money in the club, is also not getting much return from title sponsorship. The question remains whether this is causing significant financial losses for Sanjiv Goenka. However, it seems that this situation is creating a difficult predicament for him, much like pouring milk into a bucket full of holes. The historic institutions like Mohun Bagan are suffering significant damage to their reputation.

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In the case of East Bengal, last year, 1XBat, a surrogate agency of 1XBET, became an associate sponsor. This year, they have a new sponsor called “Batery,” which is a clear betting app. It is not a surrogate agency.

These types of organizations are, in essence, destroying the legacy and reputation of clubs like Mohun Bagan and East Bengal. While clubs like Mohun Bagan or East Bengal use money from their CSR funds to support football teams, these betting agencies are failing to fulfill that social responsibility. Many of the smaller clubs in the country are aligning themselves with these betting agencies, and their representatives are getting involved in sponsorship deals. This puts the future of Indian football in jeopardy.