Introduction to the Controversy

Telugu cinema star Vijay Deverakonda recently found himself in the spotlight for reasons beyond his on-screen charisma. On August 6, 2025, the actor appeared before the Enforcement Directorate (ED) in Hyderabad as part of an investigation into the alleged promotion of illegal online betting applications. This probe has drawn significant attention, not only due to Deverakonda’s fame but also because it involves a broader network of celebrities and influencers accused of endorsing platforms linked to money laundering.

The ED’s Investigation Unraveled

The ED’s inquiry stems from multiple First Information Reports (FIRs) filed by the Telangana Police, targeting 29 public figures, including actors, influencers, and TV personalities. The allegations center on the promotion of betting apps like Junglee Rummy, JeetWin, and Lotus365, which are suspected of generating illicit funds through unauthorized gambling operations. Deverakonda, along with prominent names like Rana Daggubati and Prakash Raj, was summoned under the Prevention of Money Laundering Act (PMLA) to clarify their roles in these endorsements. The investigation intensified after a complaint by businessman PM Phanindra Sarma, who claimed that celebrity endorsements misled vulnerable users, leading to significant financial losses.

Vijay Deverakonda’s Defense

Following a nearly four-hour questioning session at the ED’s Basheerbagh office, Deverakonda addressed the media, emphasizing a clear distinction between betting and gaming apps. He clarified that his endorsement was for A23, a skill-based gaming platform, which he maintained is legally recognized and distinct from gambling apps. “Gaming apps are licensed, government-approved, and operate in regions where they are legally permitted,” Deverakonda stated, noting that his contract with A23 ended in 2023. His team further reinforced that the Supreme Court of India has distinguished skill-based games like rummy from gambling, ensuring his endorsements complied with legal standards.

The Bigger Picture: Celebrity Accountability

The case highlights a growing concern about the role of celebrities in promoting online platforms. The ED is scrutinizing financial transactions, digital wallets, and payment trails to trace potential proceeds of crime. While Deverakonda and others have claimed their endorsements were for legally compliant platforms, the agency is investigating whether these promotions inadvertently facilitated money laundering. The involvement of high-profile figures has sparked debates about ethical advertising and the responsibility of public figures to vet the platforms they endorse.

Implications for the Industry

This investigation could have far-reaching effects on the entertainment industry, particularly in Tollywood. With the ED also examining tax compliance related to endorsement payments, celebrities may face stricter scrutiny in the future. The Telugu film industry is reportedly planning to collaborate with the Movie Artistes Association (MAA) to educate actors on ethical advertising practices, aiming to prevent similar controversies.

Conclusion

Vijay Deverakonda’s appearance before the ED underscores the complexities of celebrity endorsements in the digital age. While he maintains his innocence, citing legal compliance, the ongoing probe serves as a reminder of the need for transparency and due diligence in promotional activities. As the investigation unfolds, it may set a precedent for how celebrities navigate endorsements in an increasingly regulated digital landscape.

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