The Enforcement Directorate (ED) has accused Nishant Pitti, co-founder of EaseMyTrip, in the ongoing investigation related to the Mahadev online betting app and money laundering case. Allegations suggest that Pitti played a significant role in facilitating the movement of proceeds from unlawful betting into the Indian equity market under the pretext of foreign portfolio investments (FPIs). The charges were outlined in the agency’s fifth supplementary chargesheet submitted to a special court in Raipur, under the Prevention of Money Laundering Act (PMLA).

The ED’s investigations have led to the provisional attachment of shares valued at Rs 59.60 crore held in Pitti’s Demat account. The agency has requested the court’s consent to confiscate these shares, asserting that they are proceeds of crime as defined by anti-money laundering regulations. The agency elaborated on its findings in the supplementary chargesheet, which identifies 42 individuals and companies implicated in the case.

Pitti, aged 40, is noted to be the chairman and managing director of EaseMyTrip. Investigators have indicated that he is closely associated with Hari Shankar Tibrewal, the proprietor of the illegal betting platform Skyexchange based in Dubai. The ED claims evidence suggests that Pitti directly engaged in activities that facilitated the introduction of illicit earnings into the Indian stock market disguised as FPIs.

Details of Alleged Financial Manipulations

The chargesheet details an alleged stock price manipulation agreement set up by Pitti on behalf of Easy Trip Planners Limited, involving an associate of Tibrewal to artificially boost the company’s share price and overall market capitalisation. The ED posits that Pitti knowingly assisted Tibrewal in obscuring the origins of funds generated through Skyexchange, thereby acquiring and concealing these illicit proceeds.

Reports indicate that the agency also highlighted that EaseMyTrip served as a co-sponsor of a cricket series in India in 2022 alongside Skyexchange, suggesting a substantial operational link between the two entities. Tibrewal is purported to have utilised foreign entities under his control to launder the funds procured through Skyexchange by investing them into Indian financial markets.

Pitti has publicly stated that he is unaware of any formal allegations or the existence of a chargesheet against him, asserting that he has not been summoned to court. He expressed his commitment to cooperating with law enforcement and provided assurance that his transactions comply with applicable laws, declaring that all his assets are derived from legitimate income sources.

Broader Context of the Mahadev Betting Case

The ongoing investigation into the Mahadev betting case revolves around the Mahadev app, also known as Mahadev Online Book (MOB), which was primarily promoted by Sourabh Chandrakar and Ravi Uppal, both currently absconding. Interpol has issued Red Notices for their arrest. The ED claims that from 2019 onwards, the Mahadev app has generated around Rs 80,000 crore in illegal proceeds, while Skyexchange, which began operations in 2016, reportedly amassed about Rs 12,000 crore.

The ED has detailed that this current filings constitute the sixth chargesheet related to the case, including one primary and five supplementary submissions. It is reported that investigation efforts against most accused have been finalised, with the agency conducting numerous searches across the nation and announcing the arrest of 14 individuals. In total, assets worth Rs 1,885 crore have been attached through the course of this investigation.

Since the registration of the PMLA case in October 2022, based on FIRs from the Chhattisgarh Police, the ED has identified 116 accused through its six chargesheets, indicating ongoing investigations into the extensive network associated with illegal online betting activities in India.

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