ED searches 17 locations in Parimatch money laundering probe

MUMBAI: The betting trail just got a lot longer, with the Enforcement Directorate (ED) following a maze of bank accounts, cash channels and crypto wallets in its money laundering probe into Cyprus-based online betting platform Parimatch.

The agency conducted searches at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat and Uttar Pradesh on September 2, under the Prevention of Money Laundering Act (PMLA), 2002.

The action follows an FIR registered by the Cyber Police Station, Mumbai, against Parimatch.com over allegations that users were duped through the online betting platform. According to the ED, its investigation has found that the platform generated more than ₹3,000 crore in one year by allegedly attracting users with promises of high returns.

The agency said the money was moved through a multi-layered network designed to disguise the alleged betting proceeds. Funds were initially routed through multiple mule and merchant accounts, before being pushed through financial and commercial channels that appeared legitimate on the surface.

A key part of the alleged operation involved Cash Management System (CMS) and Domestic Money Transfer (DMT) agents. The ED said funds deposited into merchant and mule accounts were moved into CMS and DMT-linked accounts, effectively replacing legitimate cash collection with banking transactions while equivalent physical cash was supplied to people connected to the betting network.

The trail then allegedly moved into the crypto world. According to the agency, physical cash was converted into USDT through hawala and cryptocurrency operators before being transferred to wallets controlled by the offshore Parimatch network.

The ED also found what it described as another route involving Indian tour and travel operators. Funds from the alleged betting network were transferred through payment intermediaries into their bank accounts without corresponding travel services being provided.

According to the agency, the banking credits were used to settle amounts supposedly owed to Indian travel operators by overseas customers, while the corresponding sums were collected in physical cash from those customers outside India by Parimatch handlers. At least ₹8,200 crore was allegedly routed through two tour and travel operators using this mechanism.

Investigators also identified an alleged parallel channel involving sham Overseas Direct Investment (ODI) transactions and bogus imports of services. The ED said around ₹500 crore was routed through these mechanisms and remitted abroad, with the transactions allegedly backed by sham valuation reports and fictitious Form 15CA/15CB documentation despite lacking genuine commercial substance.

The searches yielded movable assets worth around ₹2.11 crore, including ₹61 lakh in cash and a 1 kg gold bar, besides documents and digital devices that the agency said were incriminating. Bank balances worth approximately ₹37 crore were also frozen.

The ED said its cumulative action in the case has so far resulted in the freezing or seizure of assets worth approximately ₹150 crore.

The agency alleges that the wider network brought together mule and merchant accounts, CMS and DMT agents, tour and travel operators, domestic entities, offshore investment structures, hawala operators and crypto channels to layer, disguise and move proceeds allegedly generated through illegal online betting.

The investigation remains ongoing.