ED Alleges Mahadev Betting Funds Financed Ebix Acquisition

The Enforcement Directorate (ED) has alleged that illegal betting funds from the Mahadev Online Book and Skyexchange platforms were used to finance Eraaya Lifespaces’ acquisition of US-based software company Ebix. The agency has provisionally attached assets exceeding ₹940 crore in connection with this money-laundering investigation.

What Happened

Businessman Vikas Garg allegedly utilized funds generated through illegal betting on the Skyexchange platform to finance Eraaya Lifespaces’ acquisition of the US-based software company Ebix, according to the Enforcement Directorate (ED), as reported by The Economic Times. The ED articulated this allegation in its recent provisional attachment order pertaining to the Mahadev Online Book money-laundering case.

The agency stated that illegal betting proceeds were channeled through various financial instruments, including Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional Placements (QIPs), and other overseas investment structures. The ED has subsequently attached assets totaling ₹940.77 crore belonging to Garg, his family members, and associated entities, as per The Economic Times.

Key Details

• Over ₹765.77 crore of alleged proceeds of crime were routed to Garg-linked companies via a network of overseas entities employing Foreign Portfolio Investment (FPI), Foreign Direct Investment (FDI), FCCBs, and QIP mechanisms, according to the ED.
• Eraaya Lifespaces, promoted by Garg and his family, reportedly used these funds to acquire a 97.58% stake in Ebix for approximately ₹1,175 crore through the US Bankruptcy Court in August 2024, as alleged by the ED.
• The Mahadev Online Book app reportedly generated proceeds of crime between ₹4,000-5,000 crore annually since its alleged illegal operations commenced in 2019, according to ED estimates. Skyexchange.com alone is estimated to have generated about ₹22 crore weekly from September 2020 onward.
• Garg informed investigators in his statement under the Prevention of Money Laundering Act (PMLA) that the Ebix acquisition was financed through multiple sources, including approximately ₹300 crore from Vikas Lifecare, around ₹250 crore from a QIP, and ₹374.4 crore through FCCBs. The ED noted Garg admitted that foreign entities had invested in his listed companies, and alleged he was aware of the purported illegal source of these funds, as reported by The Economic Times.
• Bank account analysis by investigators reportedly showed Eraaya Lifespaces’ QIP escrow account received ₹248.5 crore from overseas investors in August 2024, subsequently transferred to the company’s main account for the Ebix acquisition. Additionally, transfers of approximately ₹292.41 crore from Vikas Lifecare to Ebix between June and July 2024 were identified, recorded as loans, advances, and investments in financial statements, according to The Economic Times.
• The ED alleged that Kolkata-based entry operator Amit Saraogi arranged accommodation entries worth about ₹525 crore, routing roughly ₹175 crore into Garg-linked companies, including GG Engineering, to purportedly disguise betting proceeds as legitimate investments.
• The provisional attachment by the ED encompasses ₹893.03 crore representing a portion of Eraaya Lifespaces’ shareholding in Ebix, along with immovable properties valued at ₹47.74 crore, bringing the total attachment to ₹940.77 crore.

Why It Matters

The investigation underscores regulatory scrutiny on financial transactions involving alleged illegal proceeds. The routing of funds through complex overseas structures and various investment mechanisms highlights the methods employed in alleged money laundering operations, drawing attention from financial regulators. The provisional attachment of significant assets by the ED indicates a material impact on the involved entities and individuals, reflecting the agency’s enforcement actions under the PMLA. This case, stemming from multiple FIRs against betting platform operators across several Indian states, suggests a coordinated approach by law enforcement to address the broader issue of illegal online betting and associated financial crimes, as reported by The Economic Times.

Originally reported by The Economic Times·Published 15 Jul 2026, 20:32