[Update] After ED Raids, EaseMyTrip Denies Links To Mahadev Betting App

Update | April 17, 12:27 PM

Online travel aggregator (OTA) Easemytrip has issued clarification on the raids conducted by the Enforcement Directorate at its premises in connection with the Mahadev betting app case.

In a statement today, EaseMyTrip denied any association with the Mahadev app or any other betting platform.

“As per information available in the public domain, the ED conducted searches at over 50 locations of various persons/ corporates. Amongst them one was EaseMyTrip premises,” the travel tech company said.

“While EaseMyTrip has no direct or indirect association with the Mahadev Betting App or any other betting platform, we remain fully committed to cooperating with the authorities throughout the course of the investigation,” a company spokesperson added.

The clarification came a day after reports surfaced that the central probe agency ED carried out raids at several locations across the country linked to EaseMyTrip promoter and cofounder Nishant Pitti. The searches were part of the ED’s money laundering probe into the Mahadev betting scam, which duped gullible investors out of a whopping INR 20,000 Cr.

Officials probing the matter stated that no incriminating evidence has been found thus far during the searches at premises linked to EaseMyTrip,  as per an ANI report.

At 12:09 PM, shares of EaseMyTrip were trading 0.25% higher at INR 12.23 apiece on the BSE.

 

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Original | April 16, 4:34 PM

The Enforcement Directorate (ED) is reportedly conducting raids at several locations across the country linked to online travel aggregator EaseMyTrip’s promoter and cofounder Nishant Pitti as part of its ongoing money laundering investigation into the INR 20,000 Cr Mahadev betting case.

The raids are currently underway in 15 locations across India, including Delhi NCR, Mumbai, Chandigarh, Ahmedabad, Indore, Jaipur, Chennai and Sambalpur, CNBC TV-18 reported, citing sources.

Following the report, shares of EaseMyTrip nosedived 8.61% to close today’s trading session at INR 12.20 apiece on the BSE. 

Inc42 has reached out to EaseMyTrip seeking comments on the development. The story will be updated on receiving a response.

As per the ED’s investigation, the Mahadev app was run by Saurabh Chandrakar and Ravi Uppal. It allowed users to bet in real-time on games, including cricket, football, and tennis. The app was widely popular and had nearly 10 Mn users at its peak. 

In the past, the ED also alleged that former Chhattisgarh chief minister Bhupesh Baghel accepted kickbacks worth over 500 Cr from the promoters of the Mahadev app. However, Baghel rejected these claims, labelling them as attempts to malign his image. 

What Is The Mahadev Betting Case?

The Mahadev Online Book app was arguably one of India’s biggest illegal betting rackets, which defrauded Indian investors of about INR 20,000 Cr. In 2023, the electronics and information technology ministry (MeitY) blocked the Mahadev app for violating the country’s money laundering laws.

The investigation by the ED revealed that the app was being used to launder money between India and Dubai through dubious banking methods or ‘hawala’ transactions. The proceeds of the crime in the case were estimated to be around INR 20,000 Cr, of which INR 1,100 Cr were diverted into the stock market through dummy accounts and fake bank entities.

The Mahadev betting app scam came to light after Chandrakar’s lavish wedding celebration in the UAE made headlines in February 2023. The wedding cost around INR 200 Cr, with at least half a dozen Indian celebrities paid to perform at the event. Private jets were hired to ferry relatives of Chandrakar from India.

Later, the probe agency reportedly froze funds worth over INR 1,700 Cr and arrested nearly a dozen persons in connection with the money laundering case linked to the Mahadev Book app.

In October last year, reports said that Chandrakar, the alleged mastermind behind the Mahadev betting scam, was arrested in the UAE.