- Vijay Deverakonda and Rana Daggubati are among 29 celebrities charged by the ED for endorsing betting apps
- The accused include film actors, influencers, and YouTubers violating the Public Gambling Act, 1867
- The ED's case is based on five FIRs filed in Andhra Pradesh and Telangana
South actors Prakash Raj, Vijay Deverakonda, and Rana Daggubati, are among 29 celebrities facing an Enforcement Directorate (ED) 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 Telangana and Andhra Pradesh. The federal agency's case is based on the violations of the Prevention of Money Laundering Act (PMLA).
Besides Mr Deverakonda, Mr Daggubati, and Mr Raj, the accused list features several other prominent names from Tollywood, the Telugu film industry, including 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 agency suspects that their 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.
The police in Telangana and Andhra had earlier filed cases against most of these celebrities under relevant sections of the Bharatiya Nyay Sanhita (BNS), Telangana Gaming Act, and the IT Act. 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.
