ED Raids 12 Locations In 4 States Over Parimatch Betting Probe

The Enforcement Directorate (ED) conducted searches at 12 locations across four states on Wednesday in connection with a money laundering case involving Cyprus-based online betting platform Parimatch. The searches, which began early Wednesday, covered locations in Maharashtra, Delhi-NCR, Rajasthan, and Gujarat.

The ED's Mumbai Zonal Office carried out the search operation under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002. The agency searched premises of payment companies, Chartered Accountants, and Company Secretaries suspected of facilitating the movement of proceeds out of the country through illegal remittances and sham Overseas Direct Investment transactions.

The search operation is part of an ongoing probe into Parimatch's alleged money laundering activities. The ED had earlier conducted searches at 17 locations across six states on May 26, seizing movable assets worth around Rs 1.56 crore and freezing funds of around Rs 3.8 crore in various bank accounts.

The ED initiated its investigation based on an FIR registered by the Cyber Police Station in Mumbai against Parimatch.com over allegations of cheating users through its online betting platform. According to the agency, the platform and its associates generated more than Rs 3,000 crore in a year through the betting operation.

The ED's investigation has revealed that Parimatch and its associates adopted a complex network of mule accounts, payment intermediaries, and financial inclusion channels for collection, layering, and transfer of user funds. The agency has alleged that user deposits and payouts were routed through current accounts maintained by software, fintech, and technology-related entities.

The ED has also alleged that withdrawals by users were processed without any direct outward payment from accounts controlled by the betting platform. Instead, deposits made by other users were allegedly routed to the bank accounts or UPI IDs of users seeking withdrawals in multiple tranches, making it difficult to trace the actual source of the funds.

The search operation is a significant development in the ED's probe into Parimatch's alleged money laundering activities. The agency is likely to continue its investigation and may conduct further searches and seizures in the coming days.

The case highlights the growing concern over online betting and money laundering in India. The ED's probe into Parimatch's activities is part of a larger effort to crack down on illegal online betting platforms and their associates.

The ED's investigation has significant implications for the online betting industry in India. The agency's findings are likely to lead to further action against other online betting platforms and their associates, and may result in changes to the regulatory framework governing the industry.

In conclusion, the ED's search operation is a significant development in the probe into Parimatch's alleged money laundering activities. The agency's investigation has revealed a complex network of money laundering and has significant implications for the online betting industry in India.