ED links EaseMyTrip co-founder Nishant Pitti to Mahadev betting scam

The Enforcement Directorate (ED), in its latest submission to the Adjudicating Authority (AA) overseeing money laundering cases under the Prevention of Money Laundering Act (PMLA), has levelled serious allegations against Nishant Pitti, co-founder of online travel company EaseMyTrip. The submission forms part of an ongoing investigation into the Mahadev online betting application.

According to the ED, Pitti is allegedly linked to the operations of Sky Exchange, an illegal betting platform associated with the Mahadev app. The agency has outlined four key allegations implicating Pitti and his company. ED asserts that Pitti was aware of Sky Exchange's activities, which are central to the illegal betting network under scrutiny.

Reportedly, Pitti's firm allegedly made payments to two shell entities—Nischay Trading Private Ltd. and Silvertoss Shoppers Pvt. Ltd.—which the ED has identified as "entry-providing" companies linked to Sky Exchange.

During searches conducted in April, ₹7 lakh in cash was recovered from Pitti's residence. The ED maintains that these funds could be potential proceeds of crime and may be linked to the betting platform's operations.

The ED also alleges that Pitti maintained contact with an operator involved in manipulating stock prices of listed companies by using privileged access to beneficial shareholding positions (Benpos). The manipulation allegedly involved an information arbitrage stemming from the difference in access to Benpos by promoters versus the public, which only sees such data quarterly.

The ED’s application includes digital evidence from the laptop of Prashant Bagri, an associate of an accused in the case. The data reportedly lists Pitti as an agent of Sky Exchange. Additionally, the ED claims that EaseMyTrip made financial remittances in 2021 to the aforementioned shell companies, suggesting the firm was involved in laundering proceeds from the illegal betting operations.

The ED estimates that the scam involved the manipulation of stock prices of 25 listed entities using illegal proceeds totaling ₹350 crore. However, the agency clarified that the allegations are subject to judicial review and validation.

In response to the allegations, EaseMyTrip had issued a public statement distancing itself from the controversy. "As per information available in the public domain, the ED conducted searches at over 50 locations of various persons and corporates. Amongst them was one EaseMyTrip premises,” a spokesperson for the company said.

The company also confirmed the ED's search through a regulatory filing in April, stating: "The premises was searched and no incriminating documents or digital records were found. No seizure was made from the premises."

EaseMyTrip reiterated that it has no direct or indirect association with the Mahadev betting app or any other illegal betting platform and has expressed full cooperation with authorities.

The investigation into the Mahadev app, a widespread online betting racket, continues to expand as authorities delve deeper into the financial networks allegedly used to launder illegal earnings.