In a major development that has rocked the entertainment industry, the Enforcement Directorate (ED) has summoned four leading South Indian film personalities—Rana Daggubati, Prakash Raj, Vijay Deverakonda, and Lakshmi Manchu—for questioning in connection with a money laundering investigation linked to illegal online betting and gambling platforms. The federal financial probe agency has accused the actors of endorsing betting apps that are allegedly involved in the generation of illicit funds. This move is part of a broader crackdown on celebrities and social media influencers who are suspected of promoting unregulated online betting platforms that have been deemed illegal under Indian law.
Summons Issued: Dates and Accusations
According to official sources, the ED has directed actor Rana Daggubati (40) to appear before its zonal office in Hyderabad on July 23 actor Prakash Raj (60) has been summoned on July 30, followed by Vijay Deverakonda (36) on August 6 and Lakshmi Manchu (47) on August 13. The ED has alleged that the four actors had “endorsed” online gambling platforms such as Junglee Rummy, JeetWin, and Lotus365, which have been under investigation for running illegal betting operations and generating crores worth of unaccounted funds. Sources within the ED noted that these celebrities were compensated with endorsement fees for promoting the platforms on social media and other digital platforms. The agency is now seeking to examine whether these endorsements directly or indirectly facilitated the laundering of illegal earnings through the guise of online gaming. Statements from all four actors will be recorded under the provisions of the Prevention of Money Laundering Act (PMLA) during their respective appearances.
ED Acting on Multiple FIRs from Telangana
The current ED probe is based on at least five First Information Reports (FIRs) registered by state police forces, particularly in Telangana. These FIRs were filed earlier this year, alleging that a group of celebrities and social media influencers had actively promoted online betting platforms despite their questionable legal status.
One such FIR, lodged at the Miyapur Police Station in Hyderabad in March, named around 25 celebrities and influencers including Daggubati, Raj, Deverakonda, and Manchu. The complaint was filed by businessman PM Phanindra Sarma, who raised concerns over what he termed a “disturbing trend” of public figures using their social media influence to endorse gambling apps. The complaint stated that this form of promotion violated Indian laws and exposed common citizens, especially youth, to the dangers of gambling addiction and financial ruin.
The ED has since taken cognisance of these complaints, using them as a foundation to initiate its own investigation into the laundering of proceeds generated from illegal gambling operations through digital payment channels and cryptocurrency.
Celebrities Claim Ignorance About App Functions
In earlier statements to both state police and media outlets, some of the celebrities have maintained that they were unaware of the true nature of the apps they had endorsed. They argued that their associations were made in good faith, often through branding agencies or public relations firms, and were treated like any other promotional engagement.
According to ED sources, several of the summoned individuals have claimed that they believed the platforms were merely gaming apps and not associated with illegal betting or gambling. They also claimed they did not have any financial interest in the platforms beyond a one-time endorsement fee. Despite these claims, the ED intends to thoroughly verify financial transactions, contracts, and digital communications between the actors and the betting companies to determine the extent of their involvement.
It is worth noting that this is not the first time celebrities have landed in trouble over endorsing betting platforms. However, this case could set a significant legal precedent, especially in the context of the increasing use of celebrity endorsements for online activities that fall into grey legal areas.
A Larger Trend of Celebrities in Gambling Promotions
This episode reflects a broader issue—where celebrities, knowingly or unknowingly, become brand ambassadors for controversial or unregulated digital platforms. With the rapid growth of online gaming and fantasy sports in India, several apps have entered the market without sufficient regulatory oversight. These platforms often blur the line between legal skill-based games and illegal betting, taking advantage of ambiguous laws to lure in users.
The influence of celebrity endorsement in India is profound, especially in southern states where film actors often hold cult-like followings. When stars endorse such apps, it not only gives them a layer of legitimacy but also expands their reach to millions of fans. Authorities have now begun to tighten regulations around these endorsements, especially when they relate to gambling or health risks, by invoking provisions under the Consumer Protection Act and the Information Technology Act in addition to the PMLA.
Legal Scrutiny Likely to Intensify
The summons issued by the Enforcement Directorate mark a significant turn in India’s ongoing effort to clamp down on illegal betting and money laundering. While the actors may claim ignorance or limited association, the legal process is likely to test those claims with rigorous scrutiny. This probe also serves as a warning to other celebrities who may be promoting controversial products or platforms without due diligence.
As India’s digital economy grows and unregulated platforms mushroom across the internet, regulatory bodies like the ED are increasingly asserting their authority. This case is not just about the four actors; it’s about setting a precedent for accountability in celebrity endorsements. The message is clear—fame cannot shield one from legal consequences, especially when public trust and financial legality are at stake.
