Mumbai, May 27: The Enforcement Directorate (ED) has intensified its investigation into the illegal online betting platform ‘Parimatch’, based in Cyprus. This action is part of an ongoing probe under the Prevention of Money Laundering Act (PMLA) of 2002. The ED conducted searches at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, Daman, and Uttar Pradesh on Tuesday.
During these searches, the ED seized approximately ₹1.56 crore in cash and assets, including around ₹1.2 crore in cash. Additionally, nearly ₹3.8 crore held in various bank accounts has been frozen. Several objectionable documents and digital devices were also confiscated.
The investigation began based on an FIR filed at the Cyber Police Station in Mumbai, which alleged that users were being defrauded through the Parimatch online betting platform. Preliminary findings indicate that the platform lured investors with promises of high returns, amassing over ₹3,000 crore in a year.
Investigators have uncovered that Parimatch and its associates employed a complex network of ‘mule accounts’, payment intermediaries, and financial inclusion channels to collect, circulate, and transfer users’ funds. In some instances, the withdrawal process for users was completed without any direct external payments, meaning no direct payments were made from accounts controlled by the platform. Instead, funds deposited by other users were sent in multiple installments to the bank accounts or UPI IDs of users withdrawing money. This method obscured the true flow of funds and avoided direct payment connections.
The investigation also revealed that the money deposited and withdrawn by users was funneled through multiple current accounts opened in the names of software, fintech, and technology-related entities, which were also involved in legitimate business activities. Allegations suggest these accounts were used to deposit users’ funds and facilitate payments disguised as ‘vendor payments’, business transactions, and ‘payment gateway services’.
Additionally, the searches revealed the misuse of a ‘banking correspondent’ (BC) network, mobile money transfer agents, customer service centers, cash management services (CMS), local grocery stores, and retail outlets for payment processing and transactions. The investigation uncovered a multi-layered system where users’ funds were routed through retailers/customer service centers operating under the BC network.
Some agents reportedly diverted cash received through CMS channels and adjusted it with RTGS transfers made by Parimatch users. This concealed the true source of funds and their movement. Such cash funds were later sent abroad through hawala channels.
Further investigations indicated that Parimatch aggressively promoted its betting platform through surrogate advertisements under the names ‘Parimatch Sports’ and ‘Parimatch News’. Unlike other betting websites, Parimatch focused on hyper-local marketing, sponsoring local cricket league teams in over 15 states in India, as well as hockey and football tournaments.
The platform also promoted betting-related advertisements through major quick-commerce apps, distributing promotional material alongside grocery deliveries to attract new users. These ads were strategically displayed to users while using the app and placing orders, aiming to draw them towards the platform. The ED has frozen assets worth ₹112 crore in this case, with further investigations ongoing.
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