ED attaches ₹940.77 crore in Mahadev betting case, links funds to Ebix acquisition

The Enforcement Directorate (ED) has provisionally attached assets worth ₹940.77 crore belonging to businessman Vikas Garg, his family members and entities controlled by him, alleging that the assets represent proceeds of crime linked to the Mahadev Online Book-Skyexchange illegal betting syndicate. The attachment, carried out under the Prevention of Money Laundering Act (PMLA), 2002, expands the agency's investigation into one of India's largest online betting and money laundering cases.

According to a press release issued by the ED's Raipur Zonal Office on July 10, the attached assets include residential properties, land parcels, equity shares and other securities. The agency alleged that the funds were laundered through a complex network of shell companies and layered financial transactions before being invested into various businesses and financial assets.

The latest development follows the ED's recent allegation that proceeds from the Mahadev betting network were used to finance the acquisition of US-based software company Ebix by Eraaya Lifespaces. According to the agency, Vikas Garg allegedly channelled betting proceeds through entities under his control, which were subsequently used to fund the acquisition. The transaction has brought the high-profile cross-border deal under the scanner of the money laundering investigation.

According to the ED, its investigation found that proceeds generated from the Mahadev Online Book and Skyexchange betting operations were routed through a multi-layered structure involving accommodation entries, shell companies and complex financial transactions to conceal the origin of the funds.

The agency alleged that proceeds of crime amounting to approximately ₹940.77 crore were channelled into companies owned and controlled by Garg. These funds were subsequently utilised for the acquisition of shares, securities and other assets, thereby integrating the money into the formal financial system.

Investigators have alleged that the betting syndicate operated through a franchise-based "panel" network managed from overseas, generating proceeds of crime exceeding ₹450 crore every month through illegal online betting operations.

The money laundering probe is based on an FIR registered by the Chhattisgarh Police in Durg, along with several other FIRs filed by police authorities in Chhattisgarh, Andhra Pradesh and West Bengal. The accused have been booked on allegations including criminal conspiracy, cheating and forgery in connection with the operation of illegal online betting platforms.

The ED has alleged that the Mahadev betting ecosystem relied on a network of overseas operators and local franchisees that created betting panels, enrolled users and facilitated financial transactions outside regulated channels.

The attachment order adds another dimension to the investigation by linking the alleged proceeds of crime to the acquisition of Ebix Inc., the US-based software company that underwent bankruptcy proceedings before being acquired by an Indian consortium led by Eraaya Lifespaces.

According to the ED, the funds routed through entities controlled by Garg ultimately financed the Ebix acquisition, making the transaction part of the agency's wider investigation into the alleged laundering of illegal betting proceeds through legitimate corporate investments. The allegations are part of the ED's investigation and have not been tested in court.

With the latest attachment, the total value of assets attached, seized or frozen in the Mahadev betting case has reached approximately ₹3,800 crore.

Earlier in the investigation, the ED had issued seven provisional attachment orders and filed multiple prosecution complaints, including supplementary complaints, before the Special PMLA Court in Raipur. The court has taken cognisance of the money laundering offence, according to the agency.

Before the latest action, assets worth around ₹2,825 crore, including foreign assets, had already been attached, seized or frozen in the case.

The ED said further investigation is underway and additional financial transactions connected to the alleged betting syndicate are being examined.