ED vs 29 Celebrities: What the Lotus365 Promotion Case Means for Users

What Actually Happened: The ED Case in Plain Terms

The Enforcement Directorate is not investigating whether Lotus365 is a good or bad product. It is investigating where the money came from and where it went.

The case began with FIRs filed by Telangana police against celebrities and influencers for promoting online betting apps. The ED then stepped in under the Prevention of Money Laundering Act (PMLA) to trace the financial trail [citation:16][citation:17].

The core allegation is straightforward. Betting apps operating illegally in India paid celebrities to promote them. The money used for those payments, the ED alleges, was part of the proceeds of the betting operations themselves. That makes the promotion a link in the money laundering chain [citation:1][citation:5].

This is not a minor regulatory matter. It is a criminal investigation under PMLA, which carries serious consequences for anyone found to have knowingly participated.

The Names on the List, and What They Said

The ED has named around 29 celebrities and social media influencers in its investigation. The list includes some of the biggest names in Telugu cinema and beyond [citation:16].

The names reported so far

Others questioned in related probes

Separate from the Telangana FIR, the ED has also questioned celebrities in connection with the 1xBet case, including Sonu Sood, Urvashi Rautela, Yuvraj Singh, Harbhajan Singh, Suresh Raina, and Shikhar Dhawan [citation:18][citation:21].

The common thread in the ED’s questions is simple: did the celebrity know the app was illegal? [citation:25].

The Law That Makes This a Criminal Matter

The legal framework changed in 2025, and most users have not caught up with what it means.

The Promotion and Regulation of Online Gaming Act (PROGA) 2025 came into force to prohibit all online money games in India. It does not distinguish between games of skill and games of chance. It prohibits the games themselves, the advertising of those games, and the processing of financial transactions related to them [citation:3][citation:7].

The penalties for advertising

These penalties apply to the celebrities who advertise, the agencies that arrange the ads, and the platforms that commission them. The law does not treat an endorsement as a harmless promotional activity [citation:15].

The ED’s case is built on top of this. If the money paid for the endorsement came from illegal betting proceeds, the endorsement becomes part of a money laundering offence under PMLA. That is a separate and more serious charge.

How Much Money the ED Says Lotus365 Moved

The ED has put a number on it. And the number is not small.

According to ED officials, Lotus365 generated proceeds of crime of around ₹2,400 crore. The figure was calculated based on an estimated collection of ₹50 crore per month over approximately 48 months, starting from April 2020 [citation:2][citation:10].

For context, the ED estimates that the broader Mahadev Online Book network, including sister platforms like Skyexchange, generated between ₹36,000 crore and ₹43,400 crore over seven years [citation:2][citation:6]. Lotus365 is one node in that network.

These figures come from the ED’s provisional attachment orders, not from independent audits. But they represent the agency’s official position in court filings.

The Kanpur Case That Showed How the Network Worked

If you want to understand what happens to money deposited into Lotus365, the Kanpur police case from April 2026 is the clearest example.

Kanpur Police arrested eight people connected to a syndicate running betting operations through Lotus365, Reddy Book, KARTIKEY, and DUBAI EXH. The arrests revealed a structure that most users never see .

The police commissioner stated plainly that despite being banned in India, betting was being conducted on these apps. The case also revealed that users were allowed to win small amounts initially, then made to lose when they placed larger bets .

What This Means If You Have Money on the Platform

The ED case does not mean every user is a suspect. Under PROGA, the penalties target operators, advertisers, and financial institutions. Players are not penalised under the Act [citation:15].

But that does not mean you are safe. It means the risk is different.

If you have a balance, the practical steps are the same as in any platform risk scenario: withdraw in small increments if possible, document everything, and do not deposit more. Our withdrawal guide covers the process. Our deposit guide explains how the payment chain works.

The Cons: What the Platform Will Not Tell You

We are not here to defend the platform. We are here to tell you what the promotional pages omit.

Frequently Asked Questions

The Bottom Line

The ED case is not about whether you personally did something wrong. It is about the platform you deposited money into.

The celebrities who promoted it are now answering questions under PMLA. The ED estimates ₹2,400 crore moved through Lotus365. The Kanpur police case showed how the money was laundered through rented bank accounts and WhatsApp-coordinated transfers.

None of this means the platform will disappear tomorrow. It means the risk you took when you deposited was real, and the legal framework has now caught up with it.