Mahadev betting funds used for Ebix buy: Enforcement Directorate

Mumbai: Businessman Vikas Garg used money generated through illegal betting on Skyexchange platform to finance Eraaya Lifespaces' acquisition of US-based software company Ebix, the Enforcement Directorate (ED) has alleged in its latest provisional attachment order in the Mahadev Online Book money-laundering case.

The illegal betting money was routed through Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional Placements (QIPs) and other overseas investment structures, the agency said in its order attaching assets worth ₹940.77 crore belonging to Garg, his family members and entities linked to them.

According to the ED, ₹765.77 crore of proceeds of crime were routed to companies linked to Garg through a network of overseas entities using Foreign Portfolio Investment (FPI), Foreign Direct Investment (FDI), FCCBs and QIP mechanisms.


Also read: Mahadev app case: Chhattisgarh court sends Ebix chairman Vikas Garg to 10-day ED custody

The agency alleged that the funds were ultimately used by Eraaya Lifespaces, promoted by Garg and his family, to acquire a 97.58% stake in Ebix through the US Bankruptcy Court in August 2024 for approximately ₹1,175 crore.

ET reviewed ED's court filings.

Eraaya Lifespaces, which has been renamed Ebix Ltd, and Ebix Inc could not be immediately reached for comment.

According to ED, Mahadev Online Book app generated proceeds of crime of ₹4,000-5,000 crore annually since its alleged illegal operations began in 2019. The agency has estimated that Skyexchange. com generated around ₹22 crore every week from September 2020 onwards, while Lotus365. com allegedly earned about ₹50 crore per month from April 2020.

Skyexchange and Mahadev Online betting applications are run by the same network of accused probed by the ED in the case.

In his statement recorded under the Prevention of Money Laundering Act (PMLA), Garg told investigators that the Ebix acquisition was financed through multiple sources, including about ₹300 crore from Vikas Lifecare, around ₹250 crore raised through a QIP and ₹374.4 crore mobilised through FCCBs.

ED said Garg admitted that foreign entities had invested in his listed companies, and alleged that he accepted the investments despite being aware of the alleged illegal source of the funds. The agency's bank account analysis showed that Eraaya Lifespaces' QIP escrow account received ₹248.5 crore from overseas investors in August 2024. The funds were subsequently transferred to the company's main account and remitted towards the Ebix acquisition. Investigators also traced transfers of around ₹292.41 crore from Vikas Lifecare to Ebix between June and July 2024, which were reflected in the company's financial statements as loans, advances and investments.

The agency further alleged that Kolkata-based entry operator Amit Saraogi arranged accommodation entries worth about ₹525 crore against cash allegedly provided by his associates. Of this, around ₹175 crore was allegedly routed into companies linked to Garg, including GG Engineering, to disguise betting proceeds as legitimate investments.

Also read: ED arrests Ebix chairman in Mahadev betting app case



Based on digital evidence, bank records and statements recorded under the PMLA, the ED concluded that ₹765.77 crore invested in Garg-linked entities constituted proceeds of crime generated through Skyexchange. It has provisionally attached a corresponding portion of Eraaya Lifespaces' shareholding in Ebix, valued at ₹893.03 crore, along with immovable properties worth ₹47.74 crore, taking the total attachment to ₹940.77 crore.

"The attachment was necessary as the assets were liable to be transferred or otherwise dealt with in a manner that could frustrate confiscation proceedings under the PMLA," the ED document stated.

The money laundering investigation stems from FIRs registered in Chhattisgarh, Andhra Pradesh, West Bengal and other states against the operators, promoters and associates of the betting platforms on charges including criminal conspiracy, cheating and forgery.

ED alleged that Mahadev Online Book and Skyexchange operated through a franchise-based "panel" network from overseas and generated proceeds of crime exceeding ₹450 crore every month. The funds were laundered through shell companies, accommodation entries and layered financial transactions before being invested in various assets, it added.

Earlier this year, one of the alleged masterminds of the Mahadev syndicate, Saurabh Chandrakar, was arrested in Oman after allegedly entering the country on a forged Indonesian passport following his escape from the UAE.

Indian authorities have initiated extradition proceedings in coordination with the Central Bureau of Investigation (CBI). Chandrakar had earlier been detained by Dubai Police and placed under house arrest before allegedly fleeing, according to sources.