Mahadev Betting app scam: Enforcement Directorate probes EaseMyTrip CEO Nishant Pitti, says Report
The Enforcement Directorate (ED) is probing travel firm EaseMyTrip CEO Nishant Pitti, who has been accused of being known of the activities of Sky Exchange, an illegal betting platform linked to the Mahadev app, reported the Economic Times.
EaseMyTrip made payments to two shell firms connected to Sky Exchange in 2021 - Nischay Trading Pvt Ltd and Silvertoss Shoppers Pvt Ltd, the ED alleged. Shell companies are businesses that remain only on paper and are often used to conceal the movement of money. It confiscated ₹ 7 lakh in cash from Pitti's residence during a raid in April.
The ED suspects that the money may be linked to proceeds of crime and is considering the possibility that it could be associated with Sky Exchange's illegal activities. Pitti is accused of having connections with an operator working alongside company promoters to manipulate stock prices.
This manipulation allegedly occurred by obtaining beneficial shareholding information (Benpos) from the promoters. Such access to information before quarterly disclosures provided an opportunity for trading based on insider knowledge, the report stated.
The data recovered from the laptop of Prashant Bagri, who is connected to the scam, reveals that Pitti was listed as an agent for Sky Exchange. Bagri also allegedly told investigators that he was in frequent contact with Pitti regarding his firm's Benpos.
The ED's investigation further states that individuals involved in the betting scam allegedly approached promoters from 25 listed companies, using illegal funds totaling ₹ 350 crore to manipulate stock prices.
'I don't know this person, and we haven't made any payments to these companies since 2017. I've never even heard of these names before. There are eight earning members in my family. We've filed income tax returns of over ₹ 1,000 crore, and our declared cash holdings are more than ₹ 70 lakh. The ₹ 7 lakh that was found is part of that declared amount," the report quoted him as saying.
Pitti earlier denied connection with the Mahadev app or any other betting app after the Enforcement Directorate conducted searches in over 50 locations, comprising its Gurugram office.
On April 17, the company stated in an exchange filing, 'While EaseMyTrip has no direct or indirect association with the Mahadev Betting App or any other betting platform, we remain fully committed to cooperating with the authorities throughout the course of the investigation."
It is important to note that these are merely allegations made by the investigating agency and must be validated through judicial proceedings
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