A Special PMLA Court remanded EBIX Chairman Vikas Garg to ED custody until July 24 in the Mahadev betting money laundering investigation | AI Generated Image
Mumbai, July 15, 2026: A Special Court under the Prevention of Money Laundering Act (PMLA) in Raipur on Wednesday granted the Enforcement Directorate (ED) 10 days’ custodial remand of EBIX Chairman Vikas Garg till July 24, holding that his custodial interrogation was necessary for an effective investigation into the alleged Mahadev Online Book and Sky Exchange betting app money laundering case. The court observed that the ED had placed sufficient prima facie material to justify his arrest and that further interrogation was required to ascertain his alleged role, trace the proceeds of crime, and investigate the involvement of other accused persons. Garg was arrested by the ED’s Raipur Zonal Office in New Delhi on Tuesday. After obtaining a 24-hour transit remand from Delhi’s Tis Hazari Court, the agency produced him before the Special PMLA Court in Raipur, which granted his custodial remand till July 24. ED Details Alleged Money TrailAccording to the ED, Garg played a key role in allegedly laundering betting proceeds by routing funds through shell companies, Foreign Portfolio Investment (FPI), Foreign Direct Investment (FDI), Foreign Currency Convertible Bonds (FCCBs), Qualified Institutional Placements (QIPs), and other overseas investment structures before deploying them in listed companies and financing the acquisition of US-based software company EBIX Inc.
The ED’s case against Garg is anchored in its Original Complaint (OC) filed before the PMLA Adjudicating Authority (AA) under Section 5(5), which describes him as a close associate of alleged Sky Exchange operator H.S. Tibrewal. According to the agency, Garg admitted during questioning that foreign entities controlled by H.S. Tibrewal, the alleged operator of Sky Exchange, routed Rs 765.77 crore of proceeds of crime into companies linked to Garg through a network of overseas entities before the funds were allegedly integrated into legitimate corporate structures.
The ED has alleged that the suspected laundering operation culminated in the acquisition of US-based software firm EBIX Inc. by Eraaya Lifespaces Ltd., describing it as one of the biggest overseas acquisitions by a company controlled by Garg. According to the agency, the transaction was financed through a mix of domestic and foreign fund-raising, a substantial portion of which it claims can be traced to the proceeds of the Mahadev Online Book and Sky Exchange betting syndicates.According to the complaint, when questioned about the source of funds used to acquire US-based EBIX Inc., Garg told investigators that his company, Eraaya Lifespaces Ltd., acquired a 97.5% stake in EBIX Inc. through a US insolvency court in August 2024 for about Rs 1,275 crore. He said the acquisition was funded through multiple sources, including Rs 300 crore from Vikas Lifecare Ltd. — another company under his control, around Rs 250 crore raised through a Qualified Institutional Placement (QIP), and about Rs 665 crore mobilised through Foreign Currency Convertible Bonds (FCCBs) subscribed by foreign entities.Funds Under InvestigationAccording to the attachment order, the ED has alleged that the entire Rs 665 crore raised through FCCBs was funded by Tibrewal, who allegedly routed the money through overseas conduit entities before investing it in Eraaya Lifespaces. The agency claimed that the FCCB proceeds, along with other investments linked to Tibrewal, formed a substantial part of the funding used for the EBIX acquisition.The ED’s analysis of bank records further showed that Eraaya Lifespaces’ QIP escrow account received Rs 248.5 crore from overseas investors in August 2024. The funds were subsequently transferred to the company’s main account and remitted towards the EBIX acquisition. Investigators also traced transfers of around Rs 292.41 crore from Vikas Lifecare Ltd. to EBIX between June and July 2024, which were reflected in the company’s financial statements as loans, advances, and investments.Based on digital evidence, banking records, and statements recorded under the PMLA, the ED concluded that Rs 765.77 crore invested in Garg-linked entities constituted proceeds of crime generated through the Sky Exchange betting platform. It has provisionally attached Eraaya Lifespaces’ shareholding in EBIX valued at Rs 893.03 crore, besides immovable properties worth Rs 47.74 crore, taking the total attachment to Rs 940.77 crore.”At the heart of the ED’s case is a highly sophisticated pipeline designed to transform dirty betting cash into blue-chip corporate assets. Garg didn’t just participate, he engineered the final integration stage using the betting proceeds to fuel high-profile corporate takeovers,” a senior official familiar with the investigation said.Statements Cited By EDA significant part of the ED’s case is based on statements recorded under Section 50 of the PMLA from Garg, businessman Sunil Bhandari, and Kolkata-based accommodation entry operator Amit Saraogi, which the agency claims are corroborated by bank records, financial statements, digital evidence, and electronic communications recovered during searches.According to the ED, Bhandari, whom it describes as a close associate of Tibrewal, admitted to arranging investments in listed companies through FPI, preferential allotments, and other investment routes in return for commissions. The agency alleged that Bhandari claimed Garg and Tibrewal worked together to channel betting proceeds into listed companies using shell entities, FPI investments, preferential allotments, and layered investment structures before manipulating share prices by creating artificial demand in select stocks. The agency alleged that GG Engineering Ltd., allegedly controlled by Garg, was identified as one of the companies used in the alleged market manipulation scheme.The ED further alleged that Bhandari’s companies — Srestha Finvest Ltd. and Sylph Technologies Ltd. — were used as vehicles to introduce betting proceeds into Garg-linked entities. According to the agency, Srestha Finvest mobilised Rs 49 crore, of which Rs 23 crore was invested in Vikas Lifecare Ltd. and Rs 5 crore was transferred to Garg’s wife, Seema Garg, on Garg’s instructions. Sylph Technologies allegedly mobilised Rs 102 crore, including Rs 44 crore sourced through shell entities, with another Rs 23 crore invested in Vikas Lifecare. The ED alleged that the funds were subsequently routed into Vikas Lifecare Ltd., GG Engineering Ltd., Advik Capital Ltd., and other accounts linked to Seema Garg as part of a layering exercise to disguise betting proceeds as legitimate investments.Also Watch:
The ED has also relied on the statement of Kolkata-based accommodation entry operator Amit Saraogi, who allegedly admitted to operating a network of shell companies used to convert cash into banking credits. Investigators alleged that Saraogi arranged accommodation entries worth about Rs 525 crore against cash allegedly provided by Tibrewal and his associates, of which around Rs 175 crore was routed into companies linked to Garg, including GG Engineering Ltd. and Teamo Productions HQ Ltd., allegedly on Garg’s instructions.To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/