New Delhi:
South stars Vijay Deverakonda and Rana Daggubati are among 29 celebrities against whom the Enforcement Directorate (ED) has filed a case for endorsing betting apps. The 29 celebrities include film actors, influencers, and YouTubers, who have been accused of violating the Public Gambling Act, 1867, by promoting such gambling apps.
The action was based on five FIRs filed in the Telugu states of Andhra Pradesh and Telangana. The federal agency has invoked the Prevention of Money Laundering Act (PMLA), under which the probe is being carried out.
Besides Mr Deverakonda and Mr Daggubati, the accused list features several other prominent names from Tollywood, the Telugu film industry, including Prakash Raj, Manchu Lakshmi, Nidhi Agarwal, Pranitha Subhash, and Ananya Nagella.
The list also features influencers like Sreemukhi, Shyamala, Varshini Sounderajan, Harsha Sai, Vasanthi Krishnan, Amrutha Chowdary, Nayani Pavani, Shoba Shetty, Neha Pathan, Pandu, Padhmavathi, and Bayya Sunny Yadav.
The ED’s Enforcement Case Information Report (ECIR) has been filed under relevant sections of the Bharatiya Nyay Sanhita (BNS), Telangana Gaming Act, and the IT Act. The agency suspects that these endorsements facilitated money laundering, with large sums allegedly routed through these promotional campaigns.
The ED move follows a complaint filed by businessman Phanindra Sarma, who alleged that celebrity endorsements misled financially vulnerable users, leading to significant losses.
Hyderabad and Cyberabad Police had earlier filed cases against most of these celebrities in Visakhapatnam, Suryapet, Cyberabad, and other areas. Mr Deverakonda, Mr Daggubati, and Mr Raj had then clarified they did not endorse any illegal app.
A statement released by Mr Deverakonda in March said that the actor had signed a contract wherein his endorsement was strictly confined to “skill-based games”. It also pointed out that such skill-based games, like rummy, have been recognised by the Supreme Court as different from gambling, and were “legally permissible”.
Mr Daggubati, through his legal team, too distanced himself from the allegations, clarifying that his collaboration with a gaming app concluded in 2017. He had said all his promotions were confined to legally permitted regions after thorough vetting by his legal team.
Prakash Raj had issued a video statement clarifying that he had signed a contract for promoting a gaming app in 2016, but did not extend it beyond a year. “I did not renew the contract in 2017. Later in 2021, when another company took over the brand, they used my old promotional video, to which I raised objections, and they withdrew it. I urge young people to avoid gambling, it ruins lives,” he said.
