Mahadev betting case: ED seizes cash, freezes assets worth over Rs 573 crore

According to the ED, Mahadev Online Book operated as a syndicate facilitating illegal betting through a network of platforms, enabling the creation of user IDs and the onboarding of new users.

The Enforcement Directorate (ED) has seized cash worth Rs 3.29 crore and frozen securities, bonds, and DEMAT accounts valued at over Rs 573 crore during its latest search operations in connection with the Mahadev Online Book betting app case.

The raids, conducted on April 16 across Delhi, Mumbai, Indore, Ahmedabad, Chandigarh, Chennai, and Sambalpur, were carried out under the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, Mahadev Online Book operated as a syndicate facilitating illegal betting through a network of platforms, enabling the creation of user IDs and the onboarding of new users. The agency alleged that the platform generated large amounts of proceeds of crime (PoC), which were then laundered through a complex web of benami bank accounts.

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The probe has revealed that these illicit funds were routed out of India and brought back through foreign portfolio investors (FPIs) based in locations like Mauritius and Dubai. These funds were allegedly funnelled into Indian stock markets and used to manipulate share prices of certain SME-sector listed companies, misleading retail investors.

Some of these investments have now been frozen. The ED suspects that promoters of certain listed entities played a role in deploying these tainted funds through preferential allotments, sale of promoter-held shares, and issuance of share warrants. These companies were also allegedly used to layer the investments to conceal their origins.

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Investigators have recovered evidence suggesting collusion between company promoters and the accused to artificially inflate stock prices and company valuations using a chain of brokers and intermediaries. Some of these individuals and brokers were also covered in the recent search operations.

So far, the ED has carried out raids at over 170 locations. Assets worth around Rs 3,002.47 crore — both movable and immovable — have been seized, frozen, or attached in the case. Thirteen individuals have been arrested, and 74 entities have been named as accused in five prosecution complaints filed so far.

The investigation is ongoing.