Money‑Laundering Scheme Linked to Online Betting Platforms Uncovered by ED

The Enforcement Directorate’s recent probe into illegal online betting has uncovered a multi‑layered money‑laundering operation that funneled enormous illegal earnings into legitimate‑appearing businesses. Central to the investigation is Vikas Garg, who was apprehended on July 14 in New Delhi under Section 19 of the PMLA, and later remanded by special courts in both Delhi and Raipur.

FIRs registered by police forces in Chhattisgarh, Andhra Pradesh, West Bengal and other jurisdictions allege that platforms such as Mahadev Online Book and SkyExchange ran a coordinated illegal gambling network. The network relies on a franchise‑style “panel” system managed from abroad, generating monthly revenue exceeding ₹450 crore.

The ED’s forensic financial analysis showed that the illicit cash was routed through a hierarchy of shell entities, involving fake transactions for cash, and foreign investments via companies based in the United Arab Emirates, Mauritius and the United Kingdom. These foreign channels were used to move funds through QIP, FPI, FDI and FCCB routes, ultimately entering companies that Garg owns or controls—both listed and unlisted—to give the appearance of clean capital.

A prior interim attachment on June 5 seized assets worth about ₹940.77 crore, covering residential plots, land parcels, equity securities and other financial instruments linked to Garg and his family. Yet, investigators assert that Garg persisted in obscuring the proceeds throughout the investigation.

The court’s decision on July 17 to remand Garg until July 24 underscores the seriousness with which Indian authorities are treating financial crimes tied to illegal gambling. The case highlights the growing focus on dismantling sophisticated money‑laundering networks that exploit online betting platforms.