The Enforcement Directorate (ED) has launched an investigation into Subdigi Ventures Private Limited, a company controlled by a Noida-based couple, after discovering a complex web of illegal foreign remittances and a connection to adult content streaming platforms.

The search operations were carried out under Section 37 of the Foreign Exchange Management Act (FEMA), in conjunction with Section 132 of the Income Tax Act, across multiple locations associated with the company and its directors.

The ED’s probe revealed that Subdigi Ventures Private Limited, under the leadership of the couple, was receiving significant foreign remittances from Technius Limited, a Cyprus-based company. Technius Limited is known to operate adult entertainment websites, including Xhamster and Stripchat, which cater to adult content streaming. The foreign remittances, sent under the pretext of services like advertising, market research, and public opinion polling, were allegedly funds derived from adult content streamed on the platforms.

During the raids, ED officials uncovered a sophisticated studio setup used for creating adult content. Investigations indicated that the couple hired models through social media platforms to perform in these adult content streams. The funds transferred from Technius Limited were funnelled through various accounts, with over Rs 15.6 crore identified as illegal remittances credited into the bank accounts of Subdigi Ventures and its directors.

In a further twist, the ED discovered an undisclosed bank account located in the Netherlands, which had received around Rs 7 crore in transfers from Technius Limited, says the statement issued by the probe agency on Friday. These foreign funds were subsequently withdrawn in cash in India, with the use of international debit cards, evading scrutiny. This financial manoeuvre raised concerns about money laundering and illicit fund transfers, said the statement.

The couple allegedly retained around 75 per cent of the earnings from the adult content platform, while passing only a small fraction of the money to the models involved in the performances. This exploitation of models and the illegal financial transactions were flagged as key elements in the ongoing investigation. The ED has gathered various incriminating documents and evidence during the course of its search operations, claimed the agency.

In addition to the financial irregularities, the ED seized cash amounting to Rs 8 lakh during the search. The seized funds, along with the uncovered financial trail, form a crucial part of the investigation into the illicit operations run by Subdigi Ventures and its directors.

The investigation into the financial transactions and the alleged nexus between the Noida-based company, the foreign remittances, and the adult content streaming platform is still ongoing. Authorities are looking into the possibility of money laundering and violations of foreign exchange regulations.

Given the complexity of the case, which involves multiple countries and financial entities, the ED is coordinating with international agencies to trace the full extent of the operations.

The case has highlighted a growing concern over the flow of illicit funds through foreign remittances under the guise of legitimate business operations, raising alarms about potential money laundering activities linked to the adult entertainment industry.

The ED’s raid and subsequent findings indicate that the couple and their company were deeply entrenched in a global financial network operating beyond the reach of Indian regulatory authorities.

As the investigation progresses, the Enforcement Directorate is expected to intensify its scrutiny of the financial operations of Subdigi Ventures Private Limited, with further actions anticipated in the coming weeks.

The authorities are also focusing on uncovering any possible links to broader criminal activities, including the trafficking and exploitation of models involved in adult content production.

(With inputs from IANS)