ED Alleges Forged Addendum in Ebix Acquisition Tied to Mahadev Betting App Probe

The Enforcement Directorate (ED) alleges a forged and backdated addendum facilitated the transfer of a 51% stake in Ebix International Holdings Ltd to Vikas Lifecare Ltd (VLL). This transaction is under scrutiny as part of a larger ₹765.77 crore money laundering investigation linked to the Mahadev betting app.

What Happened

The Enforcement Directorate (ED) has opened a new line of investigation into an Ebix-linked corporate acquisition as part of its ongoing probe into the Mahadev betting app and Skyexchange money laundering network, according to the Free Press Journal. The agency alleges that businessman Vikas Garg utilized a purportedly forged and backdated addendum to transfer a 51% stake in Ebix International Holdings Ltd, a UK subsidiary of Ebix Inc, to Vikas Lifecare Ltd (VLL), a company under his control. The ED contends this was part of an alleged money laundering arrangement involving proceeds of crime from a betting syndicate.

The agency claims the addendum was designed to facilitate the transfer of a valuable Ebix subsidiary to Garg’s entities and present the acquired asset, allegedly funded by proceeds of crime, as untainted property. The ED’s central argument is that the addendum, dated August 16, 2024, was executed before Garg’s company, Eraaya Lifespaces Ltd, had acquired Ebix Inc. The US bankruptcy court reportedly approved the acquisition only on August 31, 2024, according to the Free Press Journal.

Key Details

• The ED alleges a forged and backdated addendum facilitated the transfer of a 51% stake in Ebix International Holdings Ltd to Vikas Lifecare Ltd (VLL), as reported by the Free Press Journal.
• The addendum, dated August 16, 2024, was reportedly executed before the US bankruptcy court approved Eraaya Lifespaces Ltd’s acquisition of Ebix Inc on August 31, 2024, according to the Free Press Journal.
• Funds totaling ₹765.77 crore, allegedly from betting activities, were routed to Garg and his entities through foreign companies reportedly controlled by betting operator H.S. Tibrewal, as stated by the Free Press Journal and The Economic Times.
• A search at VLL’s office premises on July 30 by the ED found no discussion or approval relating to the August 16, 2024, addendum in VLL’s board meeting minutes for the 2024-2025 financial year, according to the Free Press Journal.
• Vikas Garg was arrested by the ED on July 14 and is currently in judicial custody, as reported by the Free Press Journal.

Why It Matters

This investigation highlights the complexities and regulatory scrutiny surrounding corporate acquisitions, particularly when linked to alleged illicit financial activities such as illegal betting. The ED’s focus on the timing and authenticity of legal documents, such as the addendum, underscores the importance of stringent due diligence and transparent governance in high-value transactions. The case connects funds from alleged betting operations to significant corporate shareholdings, indicating a broader effort to legitimize proceeds of crime through legitimate business channels, according to the Free Press Journal and The Economic Times.

The attachment of assets valued at approximately ₹940.77 crore, including shareholding related to the Ebix acquisition, as reported by the Free Press Journal, demonstrates the significant financial scale of the alleged money laundering operation. This situation could have implications for investors and regulatory bodies monitoring financial integrity within the market. It also signals increased vigilance by enforcement agencies regarding the source of investment funds in corporate takeovers.

What’s Next

Vikas Lifecare Ltd reportedly received the 51% stake in Ebix International Holdings Ltd in 2025 after Eraaya failed to repay the agreed amount by January 31, 2025, according to the Free Press Journal. Arbitration proceedings were settled through a settlement deed dated May 2025. Garg remains in judicial custody following his arrest on July 14, as stated by the Free Press Journal.

Originally reported by Free Press Journal·Published 12 Oct 2026, 03:08