ED Seizes ₹2.11 Crore Assets, Freezes ₹37 Crore In Parimatch Betting Case

The Enforcement Directorate (ED) has traced funds of over ₹900 crore allegedly generated through the Cyprus-based online betting platform Parimatch. The funds were routed abroad through sham overseas direct investment (ODI) transactions and bogus imports of services.

The ED conducted searches at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, and Uttar Pradesh. During the searches, the agency seized movable assets worth around ₹2.11 crore, including ₹61 lakh in cash, 1 kg gold bar, and frozen funds worth around ₹37 crore held in various bank accounts.

The central agency also seized incriminating documents and digital devices during the searches. With the latest action, the agency has so far frozen or seized assets worth approximately ₹150 crore in the case.

The investigation has uncovered a mechanism allegedly involving sham ODI transactions and bogus imports of services through which betting proceeds were layered and remitted abroad. Around ₹2,500 crore was allegedly routed through these mechanisms to give the proceeds the appearance of legitimate business transactions before their transfer overseas.

Among the prominent premises searched by the ED were those of Airpay Payment Services and MakeMyWallet Software India Private Limited, both involved in the digital payments and financial technology space. The cash amounting to ₹61 lakh was seized during the search operation from the premises of Mumbai-based Airpay Payment Services.

The agency is scrutinising whether merchant accounts linked to the payment ecosystem received funds generated through the Parimatch betting operation and whether those funds were subsequently transferred to other entities as part of the alleged layering process.

The probe is also examining merchant-onboarding records, transaction patterns, beneficiary accounts, and the subsequent movement of funds to determine whether betting proceeds were routed through Indian entities and subsequently represented as ODI investments or payments for services to facilitate their remittance abroad.

The ED also searched the premises of Jaipur-based MakeMyWallet Software India Private Limited as part of the investigation. Investigators are examining whether the company's payment and transaction infrastructure was used to route or layer funds allegedly generated through the betting operation before their eventual remittance overseas.

The ED's action is a significant step in cracking down on illegal online betting and money laundering in India. The case highlights the complexity of money laundering mechanisms and the need for stringent regulations to prevent such activities.

The investigation is ongoing, and the ED is likely to take further action against individuals and entities involved in the alleged money laundering scheme. The case has significant implications for the online betting industry and the need for greater transparency and accountability in financial transactions.

In conclusion, the ED's seizure of assets and freezing of funds in the Parimatch betting case is a major development in the fight against money laundering and illegal online betting in India. The case underscores the importance of effective regulation and enforcement to prevent such activities and protect the integrity of the financial system.