EaseMyTrip co‑founder Nishant Pitti denies ED money‑laundering charges, says assets are lawful

⚡ Key Financial Takeaways

The Enforcement Directorate filed a chargesheet on Sep 10 alleging Pitti facilitated illegal betting proceeds into Indian equity markets via fake foreign portfolio investments.

ED has provisionally attached demat shares of Pitti worth Rs 59.60 crore and seeks court approval to confiscate them as "proceeds of crime".

Pitti, in a statement to CNBC‑TV18, said he has no knowledge of any chargesheet, that all his transactions are through formal banking channels, and that he will contest the allegations in court.

The agency links Pitti to Dubai‑based betting platform owner Hari Shankar Tibrewal and accuses him of a pre‑arranged stock‑price manipulation scheme involving EaseMyTrip’s promoter entity.

The chargesheet also names 42 individuals and firms, including EBIX Group chairman Vikas Garg, who is already in judicial custody.

💡 Why It Matters

The case highlights the Enforcement Directorate’s expanding focus on alleged money‑laundering activities linked to online betting platforms and their alleged infiltration of Indian capital markets. If the allegations are substantiated, they could set a precedent for how foreign‑originated illicit funds are scrutinised in equity markets, and may affect investor confidence in companies linked to the accused.

Nishant Pitti’s response to the Enforcement Directorate’s allegations

EaseMyTrip co‑founder and chairman‑cum‑managing director Nishant Pitti issued a statement to CNBC‑TV18 denying any knowledge of a chargesheet or summons in the Mahadev online betting‑app money‑laundering case. Pitti said he has always cooperated with law‑enforcement agencies, that all his transactions and assets are routed through formal banking channels, and that he will contest any contrary allegations before the courts.

What the Enforcement Directorate alleges

According to a PTI report, the Enforcement Directorate (ED) filed a fifth supplementary chargesheet before a special PMLA court in Raipur, Chhattisgarh, on 10 September. The filing claims Pitti helped channel proceeds from the illegal betting platform Mahadev into the Indian equity market under the guise of foreign portfolio investments (FPIs). The agency also alleges that Pitti, acting on behalf of the promoters of Easy Trip Planners Ltd, entered a pre‑arranged stock‑price manipulation arrangement with an associate of Dubai‑based betting‑platform owner Hari Shankar Tibrewal, artificially inflating EaseMyTrip’s share price and market capitalisation.

The ED further alleges that EaseMyTrip co‑sponsored a 2022 cricket series in India alongside Skyexchange, the betting platform, using the sponsorship as evidence of an operational nexus between the two entities.

Asset attachment and confiscation request

In the same filing, the ED attached demat shares belonging to Pitti valued at Rs 59.60 crore (approximately USD 71 million) through a provisional order under the Prevention of Money Laundering Act (PMLA). The agency has asked the court to confirm the confiscation, describing the shares as "proceeds of crime".

Wider net of accusations

The chargesheet names a total of 42 individuals and companies. Among them is Vikas Garg, chairman of the EBIX Group, who was arrested in July and remains in judicial custody.

Potential impact on EaseMyTrip

While the allegations target Pitti personally, the reference to a stock‑price manipulation scheme could have implications for EaseMyTrip’s shareholders and market perception. The attachment of shares worth nearly Rs 60 crore also raises questions about the company’s governance and compliance frameworks.

Legal path forward

Pitti has pledged to contest the charges in court. The special PMLA court in Raipur will decide on the ED’s request to confiscate the attached shares and will later hear Pitti’s defence. The outcome will determine whether the assets remain frozen or are released.

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**Note:** All statements attributed to Nishant Pitti are drawn from his interview with CNBC‑TV18. The allegations and procedural details are based on the PTI report cited by the news outlet.

🏛️ Background & Context

The Enforcement Directorate investigates violations of the Prevention of Money Laundering Act, a law aimed at curbing the use of the financial system for illicit activities. In recent years, Indian authorities have intensified scrutiny of online betting and gambling operations, many of which operate from offshore jurisdictions. The Mahadev app, alleged to be an illegal betting platform, has been under investigation for facilitating large‑scale wagering and for allegedly channeling betting proceeds into the Indian stock market through fake foreign portfolio investments.

👁️ What To Watch Next

Key developments to monitor include: (1) the Raipur special court’s decision on the ED’s request to confiscate Pitti’s demat shares; (2) any subsequent court hearings where Pitti presents his defence; (3) potential regulatory actions against EaseMyTrip if the stock‑price manipulation allegations are proven; and (4) further statements from the ED or the company regarding the broader list of 42 entities named in the chargesheet.