ED Targets Ebix Chairman in Mahadev Betting App Probe
India's Enforcement Directorate (ED) has announced the attachment of assets worth more than ₹930 crore as part of its ongoing investigation into the Mahadev online betting app network. These significant attachments are directly linked to Vikas Garg, the Chairman of EBIX INC, who is alleged to have played a crucial role in the illegal operation.
Among the attached assets are shares valued at approximately ₹893 crore belonging to Eraaya Lifespaces Ltd, a company owned by the Garg family, which reportedly includes EBIX Inc. as a subsidiary. The ED's action also encompassed Garg's residential properties in Delhi, his offices, and other real estate holdings situated in prominent locations such as Goa and Nainital, bringing the total value of seized assets to over ₹930 crore.
Allegations of Illegal Fund Routing
Investigators allege that Garg utilized proceeds from illicit betting syndicates associated with the Mahadev network. These funds were reportedly channeled into his various companies through sophisticated routes, including Foreign Portfolio Investments (FPIs), Foreign Direct Investments (FDIs), and bonds. The ED suspects these methods were employed to disguise the illegal earnings as legitimate investments, effectively converting black money into white.
Garg's alleged involvement extends to being a close associate of Hari Shankar Tibrewal, identified as a mastermind behind the Mahadev online betting network. ED findings suggest Garg was aware of Tibrewal's substantial earnings from illegal betting activities since 2021. Furthermore, Garg is reportedly linked to Skyexchange, another illegal betting platform within the Mahadev network, and was known to Tibrewal's associates Gagan Gupta and Sunil Bhandari, who are also connected to Skyexchange.
Companies and Share Manipulation
The investigation has also uncovered Garg's ownership of M/s GG Engineering Ltd and Teamo Productions HQ Ltd. During interrogations, Amit Saraogi reportedly informed the ED that he facilitated bank accommodation entries against cash for these companies, acting on Garg's direct instructions. Additionally, Vishesh Gupta, a relative of Garg, allegedly became a shareholder in M/s Integra Essentia Limited and Teamo Productions HQ Ltd at Garg's behest, holding these shares on his behalf with funds arranged by Garg, who is also a director and promoter of M/s Vikas Ecotech Limited.
A critical aspect of the allegations involves the use of illegally generated Mahadev app funds and Skyexchange proceeds to manipulate and rig the share prices of several stocks. Following these discoveries, the ED has alerted the Securities and Exchange Board of India (SEBI) and requested a detailed investigation into the alleged market manipulation.
Ongoing Investigation
The latest attachments follow previous ED actions, including searches conducted at Garg’s premises in 2024. Subsequent to these searches, Garg was summoned multiple times, and his statements were recorded as part of the deepening probe into the extensive online betting racket.