The Enforcement Directorate's (ED) Mumbai Zonal Office on Thursday, 3 September conducted search operations at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, and Uttar Pradesh under the Prevention of Money Laundering Act (PMLA), 2002, targeting the Cyprus-based illegal online betting platform Parimatch. The multi-state crackdown has resulted in the freezing or seizure of assets worth approximately ₹150 crore so far.

Background and Trigger

The ED probe was initiated on the basis of an FIR registered by the Cyber Police Station in Mumbai against Parimatch.com for allegedly duping users. Investigators found that the platform generated more than ₹3,000 crore in a single year by luring users with promises of high returns, according to an ED press note.

How the Money Laundering Network Operated

The ED uncovered a sophisticated, multi-layered mechanism used to route and launder the proceeds. Betting funds were first channelled through multiple mule accounts — including those onboarded as merchant accounts — and then layered through apparently legitimate financial channels.

Cash Management System (CMS) and Domestic Money Transfer (DMT) agents played a central role. Funds received in merchant or mule accounts were diverted to CMS/DMT-linked accounts, where banking credits replaced the legitimate cash cycle, while equivalent physical cash was supplied to individuals linked to the betting network. This cash was subsequently converted into USDT through hawala and crypto operators and transferred to wallets controlled by the offshore Parimatch network.

A parallel route involved Indian tour and travel operators. Funds originating from the Parimatch network were credited into the bank accounts of these operators through payment intermediaries without any corresponding services being rendered. The banking credits were used to settle purported dues of overseas clients, while matching amounts were collected in cash by Parimatch handlers abroad. Transactions of at least ₹200 crore were routed through two such operators, according to investigators.

Sham ODI Transactions and Bogus Imports

Investigators also identified sham Overseas Direct Investment (ODI) transactions and bogus imports of services, through which ₹500 crore was layered and remitted abroad. These remittances were reportedly supported by fabricated valuation reports and fictitious Form 15CA/15CB documentation, despite lacking any genuine commercial substance.

Seizures and Asset Freeze

The searches led to the seizure of movable properties worth around ₹2.11 crore, including cash of ₹61 lakh and a one kg gold bar, along with incriminating documents and digital devices. Bank balances of approximately ₹37 crore were frozen. In total, the ED has frozen or seized assets worth around ₹150 crore in the case, the press note stated.

This comes amid a broader regulatory push against offshore betting platforms that exploit Indian users through digital payment infrastructure. The Parimatch case is among the largest crypto-linked money laundering probes under PMLA in recent years, and further action is expected as the investigation continues.