Prime Minister Narendra Modi attacked the Congress over charges that Chhattisgarh chief minister Bhupesh Baghel was paid ₹508 crore by promoters of the Mahadev betting app, as the controversy over the explosive allegations intensified on Saturday and the Congress called it a ploy to tarnish the state government days before assembly polls commence.

The controversy broke late on Friday after the Enforcement Directorate (ED) said that an email statement from a suspect in the alleged Mahadev betting app scam revealed that promoters of the operation paid bribes worth ₹508 crore to Baghel, and that cash worth ₹5.39 crore seized by them on Thursday from a hotel in Raipur was being delivered for the Congress party’s poll expenditure.

“The Congress government in Chhattisgarh has not spared any chance to loot you. They have not even spared the name of Mahadev. Just two days ago, a major action was taken in Raipur and a huge pile of cash was recovered. People are saying that this is the money belonging to sattebaj (those involved in betting) and they have collected it by looting the poor and youth of Chhattisgarh. Congress leaders have been filling their houses with the same money,” Modi said at an election rally in Durg.

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In the media, it is being published that the money is linked to him, the PM said, in what appeared to be a veiled reference to Baghel. “The Congress government and the chief minister should tell the people of Chhattisgarh what link they have with the accused in this scam sitting in Dubai,” Modi added.

Chhattisgarh goes to the polls in two phases beginning November 7. The Congress is attempting to stave off a challenge from the BJP.

In a press conference in Delhi, Union minister Smriti Irani alleged that this money had come through hawala channels from Dubai after looting the poor.

The Congress hit back at the allegations, “PM Modi is asking, what’s the relation with the Dubai people? I want to ask him, what’s your relationship with the Dubai people? Why did the arrest not happen even after the release of the lookout circular? It’s the duty of the Indian government to make this arrest. Why was the Mahadev app not closed? It’s the Indian government’s duty to shut down the app….why are you not closing the app?” Baghel asked, talking to reporters in Raipur.

Congress general secretary KC Venugopal also criticised the BJP.

“They are continuously targeting Bhupesh Baghel, who is coming from grassroots level and has become one of the most popular chief ministers of this country. They know that this election is going to be one-sided. […] Therefore this is a clear-cut conspiracy hatched by the PM to tarnish the image of Baghel and the Congress government,” said Congress general secretary KC Venugopal.

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ED started investigating the Mahadev Book Online Betting App syndicate in July 2022 under the Prevention of Money Laundering Act. They have alleged the promoters of the app, identified as Saurabh Chandrakar and Ravi Uppal, are based overseas and remotely ran illegal betting operations with proceeds of crimes running into several thousand crores. Over the past three-four months, ED has arrested four people, and have seized more than ₹450 crore.

On Friday, ED arrested two more people, Asim Das and Bhim Singh Yadav, and produced them before a special Raipur court. In their remand note, they said that another suspect, identified as Shubham Soni, a “prominent member” of the financial operations of the alleged scam, was asked to appear before the agency on October 26, but sent his submissions via email. The two men have been remanded in ED custody for seven days.

“In his email submission, he [Soni] has stated that kickback funds were indeed being paid regularly on behalf of Mahadev Book to the political executives for ensuring smooth operation of betting operations in the state of Chhattisgarh. He has named ‘Verma Ji’ as one of the conduits for bribe/profit share payments,” the ED said.

The remand note, seen by HT, says that an examination of the email dated November 2 from Soni also revealed other “startling allegations.” “Namely, that regular bribe payments have been made in the past and so far around ₹508 crore have been paid by Mahadev App promoters to Bhupesh Baghel, chief minister of Chhattisgarh,” it says.

The allegations sparked a political controversy.

Read Here: Baghel got ₹508 cr from Mahadev betting app promoters, says ED; CM dismisses charge

“Shubham Soni, in a written testimony, has said that until now, the promoters of the Mahadev app have given Chhattisgarh’s CM Bhupesh Baghel ₹508 crores in bribes. But this is not the only such admission. Another shocking piece of information has come before us. The promoters of the Mahadev online book wanted protection from the administration and from Congress leaders. They would also send protection money via an officer named Chandrabhushan Verma. Chandrabhushan Verma has handled ₹65 crore in bribes for the protection of the promoters of the Mahadev app. So far, investigative agencies have recovered ₹450 crores of proceeds of crime.” alleged Smriti Irani.

She posed several questions to Baghel and the rest of the Congress leadership. First, she asked if Aseem Das, via Soni, delivered the money to Congress leaders in Chhattisgarh. Second, she asked if Soni was commanded, via a voice message, to go to Raipur and give Baghel money for election-related expenses. She also asked if on November 2, money was recovered from Das in a search. Finally, she asked if ₹15.5 crores, in various bank accounts, was frozen under PMLA.

The Congress defended itself.

Baghel said that the BJP was scared of him.”Because the BJP is scared of me the most. That’s why they want to defame me by accusing me (through ED),” he said.

Senior advocate Abhishek Singhvi said that the Chhattisgarh government began an investigation into the Mahadev app in March 2022 and about 450 people were arrested, 72 cases registered, 191 laptops, 850 mobile phones, 200 ATM cards, ₹1.5 crore and various other assets seized. However, Singhvi said the Chhattisgarh government did not have jurisdiction over the international sphere or the authority to issue extradition papers.

“They are claiming that they have caught people who are taking money from there [Dubai] and bringing it here during the time of elections. Have you ever thought about whether the international customs borders are policed by the Chhattisgarh police?” he asked.

Congress general secretary Jairam Ramesh said that the BJP put forth these accusations during the time of elections to discredit the Bhagel government, which was extremely popular.