Mahadev betting app case: ED arrests bizman Vikas Garg
Mahadev Betting App Case: ED Seizes Vikas Garg in Money Laundering Investigation
Mahadev betting app case – New Delhi: In a significant development, the Enforcement Directorate (ED) has charged Vikas Garg, a prominent businessman, in connection with a money laundering inquiry tied to the Mahadev online betting scandal. The agency confirmed the arrest following searches at Garg’s properties in Delhi, as per official sources.
Assets Attached and Legal Proceedings
Under the Prevention of Money Laundering Act (PMLA), Garg was taken into custody after authorities linked his assets to the ₹6,000 crore illicit betting network. He was presented to a special court and is scheduled to be transported to Raipur. This marks the 14th individual detained in the case, with five charge sheets already submitted to a PMLA court in Raipur, naming 74 entities as accused.
Money Laundering Tactics and Entity Ownership
“Funds from the illegal betting activities were channeled into shell companies and further processed through multiple layers of transactions. These proceeds were then used to acquire shares, securities, and other assets,” said an ED official, speaking anonymously.
The ED’s investigation revealed that the proceeds from Mahadev Online Book and Skyexchange, Dubai-based platforms operated by Sourabh Chandrakar and Ravi Uppal, were siphoned into entities controlled by Garg. Notably, Garg is the founder of three publicly traded firms: Vikas Ecotech Limited, Vikas Lifecare Limited, and Eraaya Lifespaces Limited. His involvement in acquiring a 64% stake in EbixCash through Eraaya Lifespaces Limited using illicit funds has been highlighted.
Historical Context of EbixCash Acquisition
Established in 2004, EbixCash is a forex and remittance platform that Eraaya, formerly known as Tobu Enterprises and Justride Enterprises, acquired as part of its purchase of US-based Ebix Inc. This acquisition, valued at ₹3,009 crores, was finalized via a bankruptcy court auction. The company later rebranded as Ebix Limited.
Corporate Disclosure and Pending Responses
In a June 23 disclosure to the BSE, Ebix Limited noted that the ED had issued a provisional attachment order against its assets, citing ties to foreign entities and portfolio investors. The statement emphasized that no predicate offenses had been attributed to the company or its promoters in the ongoing probe. Despite requests for comment, the company has yet to respond as of the latest update.
Case Origins and Fugitive Network
The ED’s investigation into Mahadev began in 2022, following FIRs registered in Chhattisgarh, Andhra Pradesh, and West Bengal. The illegal betting system facilitated wagers on poker, card games, and sports events, including cricket and election outcomes. Chandrakar and Uppal, the founders, fled to Dubai in 2019, where their operations reportedly continue. Chandrakar was recently detained in Muscat, and ED is preparing an extradition request. Meanwhile, Uppal disappeared from the UAE after local authorities closed his extradition case.
Political and Bureaucratic Ties
The ED has previously stated that the case involves not only substantial financial fraud but also connections to several high-profile politicians and government officials from Chhattisgarh. The total alleged value of the criminal proceeds exceeds ₹6,000 crore, underscoring the scale of the financial wrongdoing.