ED Uncovers ₹1,800 Crore Online Betting Graft, YouTuber Implicated

Answer: B

Statement 1 is incorrect. The Enforcement Directorate (ED) functions under the administrative control of the Department of Revenue, Ministry of Finance. Statement 2 is correct. PMLA criminalizes the act of money laundering itself, making it a separate offense from the 'predicate offense' (the original crime that generated the illicit funds). Statement 3 is correct. A significant feature of PMLA is the reverse burden of proof, where once the ED establishes a link between the property and proceeds of crime, the accused has to prove that the property is legitimate.

Answer: B

Statement 1 is incorrect. 'Gambling and Betting' falls under the State List (Entry 34 of List II) of the Seventh Schedule, giving states the primary legislative power over it. Statement 2 is correct. Indian courts, including the Supreme Court, have distinguished between 'games of chance' (gambling, which can be regulated/prohibited by states) and 'games of skill' (which are generally protected under Article 19(1)(g) as a right to carry on any profession, and thus cannot be outright prohibited as gambling). Statement 3 is incorrect. The IT Act, 2000, does not explicitly prohibit all forms of online betting and gambling. While it provides a framework for cybercrime and digital transactions, specific prohibitions on gambling largely come from state laws or specific central regulations if any.

Answer: C

Statement A is correct. I4C, under the Ministry of Home Affairs, serves as a nodal point for all activities related to cybercrime. Statement B is correct. Section 79 of the IT Act, 2000, provides a 'safe harbour' to intermediaries, protecting them from liability for third-party content, provided they observe due diligence as prescribed by rules. Statement C is incorrect. While RBI plays a crucial role in regulating financial transactions and combating money laundering through banks and financial institutions, it does not have the primary mandate to regulate *all forms* of online betting and gambling platforms directly. The regulation of gambling itself falls under state jurisdiction, and money laundering aspects are primarily handled by the ED under PMLA. Statement D is correct. The global nature of the internet makes it difficult to trace perpetrators, gather evidence, and enforce laws across different national jurisdictions.