Foreign Assets Under Scanner: Karnataka MLA & Probo App Face ED Heat in Multi-Crore Investigations
Bengaluru(The Uttam Hindu): In a major crackdown, the Enforcement Directorate (ED) on Thursday initiated a probe against Karnataka MLA S.N. Subba Reddy and his family over allegedly concealing overseas assets. The searches were carried out under Section 37 of the Foreign Exchange Management Act (FEMA) at five different locations in Bengaluru, including Reddy’s residence, business premises, and those of his close associates.
Sources from the ED revealed that the investigation centers around allegations of undisclosed foreign investments and immovable properties in Malaysia, Hong Kong, and Germany. These alleged assets were not reported to Indian authorities, amounting to a serious FEMA violation.
Alongside the Karnataka raids, the ED also struck in Haryana, where it froze ₹284 crore worth of assets linked to Probo Media Technologies Pvt Ltd. The company, which operates the controversial Probo app, is under investigation for running a nationwide illegal betting racket disguised as a predictive gaming platform.
Searches were conducted at the residences and offices of promoters Sachin Subhashchandra Gupta and Ashish Garg in Gurugram and Jind under the Prevention of Money Laundering Act (PMLA).
Despite being marketed as an online gaming app, Probo is alleged to encourage users to bet money on simple ‘yes or no’ questions, effectively functioning as a digital betting platform. Complainants claim the app lured them with promises of easy money, only to entrap them in a cycle of repeated losses.