ED probes EaseMyTrip CEO in Mahadev app betting scam
The Enforcement Directorate is investigating Nishant Pitti, CEO of EaseMyTrip, in connection with the Mahadev betting app scam. Pitti is accused of colluding with operators to manipulate stock prices. The ED alleges Pitti's firm made payments to shell companies. Searches were conducted at Pitti's residence. Pitti denies all allegations, stating he is unaware of the individuals and companies mentioned.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
The Enforcement Directorate (ED) has extended its investigation into the Mahadev betting app scam to Nishant Pitti, CEO of publicly traded travel booking firm Easy Trip Planners Ltd (EaseMyTrip).Pitti stands accused of colluding with a network of operators who allegedly used proceeds from the illegal betting operation to manipulate stock prices of 25 listed companies, purportedly in connivance with their promoters.In its submission to the adjudicating authority (AA), which oversees money laundering investigations, the ED has made four key allegations against Pitti. Firstly, it claims Pitti was aware of the operations of Sky Exchange, an illegal betting platform linked to the Mahadev app. Secondly, the ED alleges Pitti's firm made payments to two shell companies (termed 'entry-providing' companies by the ED) connected to the app.Thirdly, the ₹7 lakh recovered from Pitti's residence during April searches is considered potential proceeds of crime (PoC). The ED's submission, reviewed by ET, states they cannot rule out if these funds are linked to Sky Exchange's illegal activities.Fourthly, Pitti was allegedly in contact with an operator involved in colluding with promoters of listed companies to manipulate stock prices. This manipulation reportedly involved obtaining beneficial shareholding positions (Benpos) from promoters. While promoters can readily access Benpos, public disclosure via stock exchanges is only quarterly, creating an information arbitrage opportunity for in-step trading.In response to queries from ET, Pitti denied all allegations."I don't know this person, and there have been no remittances or payments to these companies since 2017. I'm hearing these names for the first time." He also stated, "With eight earning members at home and over ₹1,000 crore in IT returns, our declared cash in hand is more than ₹70 lakh. The ₹ 7 lakh recovered is insignificant compared to our income and is part of our declared cash."Pitti is a respondent in the case before the AA.Under the Prevention of Money Laundering Act (PMLA), the AA authorises the ED to retain seized assets and evidence.The ED's application states that digital data from Prashant Bagri's laptop lists Pitti as an agent of Sky Exchange. It further notes that Easy Trip Planners Ltd made remittances to Nischay Trading Private Ltd. and Silvertoss Shoppers Pvt. Ltd. in 2021, identified as entry-providing companies. Based on this, the ED concludes that Easy Trip Planners Ltd. and Pitti were involved with proceeds of crime associated with Sky Exchange.Bagri, an associate of an accused, claimed to have been in regular contact with Pitti regarding his company's Benpos. The ED's probe indicates that the betting scam players contacted promoters of 25 listed entities and used illegal proceeds to manipulate stock prices, totalling ₹350 crore. It is important to note that charges by law enforcement require judicial validation for conviction. Premises linked to EaseMyTrip and Pitti's residence were searched by the ED in April as part of the ongoing Mahadev Book online application case probe.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
3 hours ago
- The Hindu
ED initiates action against RR Industries under FEMA
The Chennai Zonal Office of the Directorate of Enforcement (ED) has issued seizure order of Rs.16.19 crore of immovable property belonging to RR Industries. The order was issued under Section 37A of FEMA, 1999. In a press release, the ED said it had initiated investigation on the private company under the provisions of Foreign Exchange Management Act, 1999, on the basis of preliminary investigations conducted by this office into RR Group Companies wherein it was observed that outward remittance to the tune of Rs.16.19 crore was made by Hanudev Investment Private Limited (HIPL) as overseas direct investments into RR Industries Singapore, a Singapore registered company. As the investments did not comply with the RBI Guidelines and FEMA Regulations, the ED investigation revealed that HIPL established a company named RR Industries Singapore (RRISPL) and invested Rs. 16.19 crore under the pretext of engaging in mineral trading, particularly coal in Indonesia and surrounding regions. However, investigation revealed that no actual assets were created through this investment, and there were no genuine efforts made by HIPL or its group companies to repatriate the funds back to India. The investment was directed into an Indonesian company Novem Coal Resources (NCR), managed by Ramnath, a cousin of R. Ravi of HIPL. When questioned, Ravi failed to provide any credible documentation or explanation regarding the operations or returns from NCR over the past 14 years. The investment was eventually written off in the books of HIPL without any justification, and Ravi's explanation that it was done based on advice due to uncertainty over mine ownership was deemed unconvincing. These actions suggest a deliberate attempt by Ravi, HIPL, and their associates to park funds overseas for personal gain while evading regulatory scrutiny. Additionally, statements from Build India Capital Advisors LLP support the claim that this was a clear case of fund diversion to a foreign entity controlled by the accused individuals.
News18
5 hours ago
- News18
Fake Policies, Documents & Murder: ED Probes Rs 100-Crore Insurance Scam In UP
Last Updated: The scam has links to at least 12 states, and 17 FIRs have been registered, including four murder cases The Enforcement Directorate (ED) has launched an investigation into a massive insurance scam in Uttar Pradesh's Sambhal district involving fake policies, forged documents, and even murders to claim insurance money. The total fraud is estimated to be over Rs 100 crore. Officials said the ED has sought related documents and FIR copies from the UP police as part of their probe. Additional Superintendent of Police (South), Anukriti Sharma, told reporters the gang has been under surveillance since January. So far, 52 people have been arrested, about 50 are still absconding, and three have surrendered in court. Further explaining on how the scam worked, Sharma revealed the gang targeted young people and sometimes killed them to claim life insurance money. They also took policies on terminally ill people, such as cancer patients, or on those already deceased. Using fake documents and tampered records, they cheated health and life insurance companies. The scam has links to at least 12 states, and 17 FIRs have been registered, including four murder cases. In the murder cases, deaths were disguised as road accidents caused by unidentified vehicles to claim insurance payouts. These FIRs were initially closed but reopened after police found irregularities. Investigations revealed that 29 death certificates used by the gang were completely fake, while some genuine certificates had altered dates to fit insurance claims. Sharma also confirmed that the ED's requests for FIRs and other documents have been fulfilled by the police. The scam's operations are not limited to Sambhal. Cases have been found in nearby districts like Amroha, Badaun, and Moradabad. Police believe the fraud amount has already crossed Rs 100 crore and could rise as the investigation continues. Early findings by the UP police point to the involvement of ASHA workers, health sector staff, and insurance company employees. The investigation on the case is currently ongoing, with more arrests expected soon. (With inputs from PTI) First Published:
NDTV
5 hours ago
- NDTV
Fake Documents, Murders: How Fraudsters Ran Rs 100 Crore Insurance Scam In UP
Sambhal (UP): A massive insurance scam involving fraudulent policies, fake documents and even killings carried out to claim insurance money has surfaced in Uttar Pradesh's Sambhal district, with the estimated fraud amount crossing Rs 100 crore, officials said on Thursday. The Enforcement Directorate (ED) has also taken interest in the case and sought related documents and FIR copies from the local police, they added. Additional Superintendent of Police (South) Anukriti Sharma told reporters that the gang involved in the scam has been under surveillance since January. So far, 52 people have been arrested in connection with the case, while around 50 accused are still absconding. Three of the accused have surrendered in court. Explaining the modus operandi, Mr Sharma said, "The gang members used to target young individuals and, in some cases, killed them to claim life-insurance money. In other instances, they took out insurance policies in the names of people suffering from terminal illnesses, such as cancer, as well as in the names of deceased individuals and then conspired to claim money from health and life insurance companies by forging documents and manipulating records." The officer said the scam has links to at least 12 states and 17 FIRs have so far been registered, including four for murder. "In the murder cases, the deaths were passed off as road accidents caused by unidentified vehicles to obtain insurance payouts. The FIRs in those cases were closed, but police managed to reopen those after finding irregularities. Investigations have so far revealed that 29 death certificates used by the gang were completely fake, while some others were genuine but had tampered dates to align with insurance claims," Sharma said. The gang's operations were not limited to Sambhal district alone. Cases have also been identified in nearby districts, such as Amroha, Badaun and Moradabad, according to officials. Police said they believe the total fraud amount has already exceeded Rs 100 crore and the figure may rise further as the investigation progresses. Sharma said police have sought detailed data from various insurance companies and are scrutinising records currently to identify other suspicious claims. The suspected data will be shared with the insurance companies for further verification and follow-up action, she said. According to Sharma, initial findings point to the involvement of ASHA workers, individuals working in the health sector and employees of insurance firms. She said the investigation is going on swiftly and more arrests are likely. Responding to a question about the ED's involvement in the case, Sharma confirmed that the federal agency has sought specific information, including FIR copies, which have been provided by police.
