The Enforcement Directorate (ED) has formally named Nishant Pitti, co-founder of online travel major EaseMyTrip (Easy Trip Planners Ltd), in its fifth supplementary chargesheet related to the extensive Mahadev online betting app money laundering investigation.
Filed before a special Prevention of Money Laundering Act (PMLA) court in Raipur on September 10, the chargesheet alleges that Pitti played a crucial role in facilitating the entry of illicit betting proceeds into the Indian equity market, disguised as foreign portfolio investments. As part of the ongoing probe, the ED has provisionally attached Pitti's DEMAT shares valued at Rs 59.60 crore, seeking their confiscation as proceeds of crime.
Allegations of Stock Manipulation and Illicit Funds
According to the ED's investigation, Pitti, 40, is identified as a close associate of Hari Shankar Tibrewal, the Dubai-based owner of the Skyexchange betting platform. The agency claims Pitti was directly involved in channeling crime proceeds into India’s stock market through various foreign portfolio investment routes.
The chargesheet further details an alleged pre-arranged stock price manipulation scheme. It states that Pitti, acting on behalf of Easy Trip Planners Ltd promoters, collaborated with an associate of Tibrewal to artificially inflate the company's share price and market capitalization. The ED also asserts that Pitti knowingly assisted Tibrewal in layering these proceeds generated through Skyexchange, thereby acquiring, possessing, concealing, and utilizing these illicit funds.
Pitti's Denial and Company's Stance
In response to the allegations, Nishant Pitti has publicly stated his unawareness of any chargesheet being filed against him and confirmed he has not received any court summons. He affirmed his consistent cooperation with law enforcement agencies and expressed his intent to provide evidence to substantiate his lawful conduct. Pitti maintained that, "All my transactions comply with the applicable laws, and all my assets have been obtained from lawful sources of income and through formal banking channels."
Meanwhile, Easy Trip Planners Ltd issued a statement indicating they had not received any formal legal intimation regarding proceedings against either the company or its co-founder, Pitti.
Broader Mahadev Betting App Investigation
The Mahadev online betting app case is a wide-ranging probe by the ED, which has already implicated numerous individuals and entities. Alongside Pitti, the latest chargesheet also names 41 other individuals and entities, including Vikas Garg, Chairman of EBIX Group. The ED alleges that Garg and his associated entities received Rs 765.77 crore from Tibrewal-controlled entities, funds purportedly used to acquire US-based Ebix Inc.
The agency estimates that Skyexchange alone generated approximately Rs 12,000 crore in proceeds of crime since its inception in 2016. The larger Mahadev app network is believed to have generated an staggering Rs 80,000 crore since 2019.
To date, the ED has made 14 arrests, attached assets totaling Rs 1,885 crore, conducted searches at 190 premises, and named 116 accused across six chargesheets as part of this extensive investigation.
EaseMyTrip Stock Performance
Following the news, shares of Easy Trip Planners Ltd (EaseMyTrip) were trading marginally higher by 0.34 percent at Rs 5.82 in Tuesday's market session. Despite this slight uptick, the stock has experienced a significant correction, down 21.03 percent year-to-date.