Vijay Deverakonda Appears Before ED; Daggubati, Manchu Summoned

When Vijay Deverakonda, actor walked into the Enforcement Directorate’s zonal office in New Delhi on August 6, 2024, the headlines instantly lit up the Tollywood circuit. The ED, India’s premier financial crime‑fighting agency, had summoned the 31‑year‑old star as part of a sprawling probe into online betting platforms that allegedly laundered crores of illicit money. Within hours, the names of Rana Daggubati and Lakshmi Manchu also surfaced in the agency’s docket, turning what began as a routine interview into a full‑blown scandal that has the film fraternity holding its breath.

Background: How the betting crackdown began

India’s crackdown on illegal gambling dates back to the Public Gambling Act of 1867, but the digital age revived old anxieties. In early 2024, a cascade of FIRs—five in total—were filed across Telangana and Andhra Pradesh after complaints that celebrities were endorsing apps that funneled money into offshore accounts. The Enforcement Directorate, acting under the Prevention of Money Laundering Act (PMLA), launched an investigation that now names 29 personalities, ranging from actors to YouTubers.

The case centers on the alleged promotion of betting apps that operate in a legal gray zone. While many of the apps claim to be “gaming” platforms, investigators argue that they disguise wagering activities behind the veneer of skill‑based games, allowing users to place bets on sports events, e‑sports, and even lottery draws. The money, they say, is then funneled through complex corporate structures designed to evade GST and TDS obligations.

Details of the summons and each star’s response

On July 23, Rana Daggubati was the first big name on the list, appearing before the ED to answer questions about his promotional videos for a now‑debunked betting app. A week later, veteran actor Prakash Raj showed up on July 30, insisting that his involvement was limited to a brief ad shoot that he believed to be lawful.

When Lakshmi Manchu was summoned, she released a short video stating that she had “never knowingly promoted any illegal activity.” She added that the contracts she signed explicitly labeled the platforms as “gaming” and that she had provided the ED with all relevant financial documents.

Vijay Deverakonda, however, chose a different tactic. After his August 6 appearance, he addressed reporters in Telugu, drawing a clear line between “betting apps” and the “gaming apps” he claims to have endorsed. "I promoted A23, a legal gaming app," he said, emphasizing that the app is registered, pays GST, and is not even accessible in Telangana. He also handed over bank statements and the agreement with the app’s developers, asserting that the ED’s interest in his name was “a misunderstanding.”

Legal framework: PMLA versus the Public Gambling Act

The dual legal framework complicates matters. The Public Gambling Act criminalizes the organization of physical gambling houses, but it does not explicitly cover digital platforms, leaving a loophole that many operators exploit. The PMLA, on the other hand, empowers the ED to trace and freeze assets linked to money‑laundering, regardless of the underlying activity.

Legal experts say the crux of the case will be proving “mens rea” – the intention to facilitate illegal betting. "If a celebrity can demonstrate that the platform was a bona fide gaming service with all statutory approvals, they may have a solid defence," notes Advocate Rohan Mehta, a Delhi‑based criminal law specialist.

Industry reaction: Fear, denial, and a call for clarity

The Tollywood industry, traditionally tight‑knit, reacted with a mix of shock and defiance. Producers’ guilds issued a statement urging the government to “clearly delineate between gaming and betting,” arguing that vague regulations are harming advertising revenue.

At a private meet of actors in Hyderabad, several stars admitted they had been approached by agencies promising high fees for app endorsements, but claimed they were never shown the fine print. "We were told it was a ‘gaming’ app, which is perfectly legal," said an unnamed influencer, echoing Deverakonda’s defense.

Meanwhile, rival app developers seized the moment, issuing press releases that highlighted their compliance with GST and licensing requirements, hoping to distance themselves from the controversy.

Potential implications: What this could mean for celebrities and the ad market

If the ED secures convictions, we could see a sweeping overhaul of influencer marketing standards in India. Brands may be forced to conduct rigorous due‑diligence checks before signing celebrities to promotional contracts. Some analysts predict a dip in ad spend on mobile apps, at least until regulatory guidelines become crystal‑clear.

On the other hand, a successful defence by any of the high‑profile actors could set a precedent that protects those who promote legitimately licensed gaming platforms. It would also underscore the importance of transparent documentation—something Deverakonda was quick to provide.

What’s next? Timeline of upcoming hearings

The ED has indicated that statements from all summoned personalities will be recorded under the PMLA within the next two weeks. Following that, investigators plan to file charge sheets against any individuals where “culpable intent” can be established. Court hearings are expected to begin in early 2025, with the possibility of appeals stretching well into 2026.

For fans, the saga is a reminder that fame can be a double‑edged sword. As the investigation unfolds, the industry watches closely, hoping for a resolution that balances legal enforcement with the creative freedoms of its stars.