Mahadev Betting App Scam: EaseMyTrip Founder Nishant Pitti Under ED Radar

A month after or any other betting platform, the Enforcement Directorate (ED) has reportedly extended its investigation into the case, with the online travel aggregator’s cofounder Nishant Pitti now under the radar.

As per an ET report, Pitti has been accused of cahoots with a network of operators who allegedly used proceeds from the illegal betting operation to manipulate stock prices of 25 listed companies where the company promoters were involved.

Besides, the ED has reportedly also recovered INR 7 Lakh from Pitti’s residence during its raids last month, which is considered as potential proceeds of crime (PoC).

It is important to note that last month, the at several locations across the country linked to Pitti, in connection with the money laundering investigation into the INR 20,000 Cr Mahadev betting case.

While the traveltech platform publicly accepted that ED conducted searches at over 50 locations, including at EaseMyTrip premises, the company said that it had “no direct or indirect association with the Mahadev Betting App or any other betting platform”.

However, as per the recent media report, the ED, in its submission to the adjudicating authority (AA), has put forward four allegations against Pitti.

The probe agency claimed that Pitti was aware of the operations of the betting website Sky Exchange, which was linked to the Mahadev app. Besides, it alleged that Pitti’s firm made payments to two shell companies connected to the app.

The two other allegations include the recovery of INR 7 Lakh from Pitti’s residence and his apparent contact with an operator who was involved in colluding with promoters of listed companies for stock manipulation.

EaseMyTrip did not immediately respond to Inc42’s queries on the development.

However, Pitti has reportedly denied the allegations once again and told ET, “With eight earning members at home and over INR 1,000 Cr in IT returns, our declared cash in hand is more than INR 70 Lakh. The INR 7 Lakh recovered is insignificant compared to our income and is part of our declared cash.”

Meanwhile, according to the ED’s application, digital data recovered from Prashant Bagri’s laptop identifies Pitti as an agent of Sky Exchange. Bagri is an associate of a key accused in the case. ED reportedly also highlights that in 2021, Easy Trip Planners Ltd. made remittances to Nischay Trading Private Ltd. and Silvertoss Shoppers Pvt. Ltd., which have been flagged as entry-providing entities.

Based on this evidence, the ED asserts that both Easy Trip Planners Ltd and Pitti were involved in handling proceeds of crime linked to Sky Exchange.

Following the development on the issue, shares of Easy Trip Planners Ltd. (EaseMyTrip) slumped more than 3% to INR 11.5 on the BSE. Overall, its shares fell almost 4.8% today, and the direct impact of the news development on the stock cannot be ascertained yet.

The Mahadev Betting App Scam

The Mahadev betting app scam started getting attention in 2023 after the, Sourabh Chandrakar, in Dubai at more than INR 200 Cr. The app, run by Chandrakar and Ravi Uppal, allowed users to bet in real-time on football, cricket, and tennis, and had 10 Mn users at its peak.

The case later involved several celebrities, including Ranbir Kapoor, Shraddha Kapoor, Huma Qureshi and Hina Khan, among others.

Months later, the ED started a crackdown and revealed the Mahadev app online betting scam.

As the investigations followed, the ED unearthed that INR 1,100 Cr from the total proceeds of the crime, estimated to be around INR 20,000 Cr, were diverted into the stock market through dummy accounts and fake bank entities.

Earlier, the ED also alleged that former Chhattisgarh chief minister Bhupesh Baghel received kickbacks worth over INR 500 Cr from the promoters of the Mahadev app.

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