The racket was allegedly operated by Mohammed Abdul Khabir Kashif, the owner of Players Paradise Gaming House located in Abids area, they said.
According to police, Kashif would allow his customers to place bets on ongoing IPL matches and employed one Shaik Kaleem as manger to run the show.
Police said Kaleem was the brother of Mohammed Amjad alias Shaik Khaja, the south India chief of terror outfit Harkat-ul-Jihad-al-Islami (HUJI), who is allegedly involved in a blast at the office of Commissioner of Task Force at Secunderabad in October 2005.
Police said Kaleem was also accused of supplying SIM cards and mobile phones to his brother while he was in Cherlapally jail here.
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Acting on a credible information Abids Police, with the assistance of DCP Central Zone Special Party, raided the shop on April 22 and apprehended six accused.
Police said Kashif and Kaleem would allow their customers to contact their associate Nitin Singh for betting, who would in turn used to contact one Datta, the Pune-based kingpin of the racket, a senior police officer said.
Police seized a television set, Rs 10,500 in cash besides four mobile phones from the possession of Kashif, Kaleem and four of their other associates, they said, adding that hunt is on to nab Dutta.
He had been arrested by city police on January 18, 2010.