The Directorate of Enforcement (ED) Mumbai Zonal Office on Tuesday conducted searches at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, Daman, and Uttar Pradesh under the Prevention of Money Laundering Act (PMLA), targeting the alleged operations of Parimatch, a Cyprus-based illegal online betting platform. The agency seized movable assets worth approximately ₹1.56 crore, including cash of nearly ₹1.2 crore, and froze around ₹3.8 crore held in various bank accounts.

Background and Trigger

The ED launched the probe on the basis of a First Information Report (FIR) registered by the Cyber Police Station, Mumbai, against Parimatch.com for allegedly defrauding users through illegal online betting operations. According to investigators, the platform reportedly lured users with promises of high returns and is suspected to have generated more than ₹3,000 crore in a single year. Several incriminating documents and digital devices were also recovered during the search operations.

How the Money Trail Was Concealed

Investigators say Parimatch and its associates allegedly operated through a layered network of mule accounts, payment intermediaries, and financial inclusion channels to collect, layer, and transfer user funds. In several instances, user withdrawals were reportedly processed without any direct outward payment from platform-controlled accounts — instead, deposits made by other users were routed directly into withdrawing users' bank accounts or UPI IDs in multiple tranches to obscure the money trail.

User deposits and payouts were also allegedly channelled through multiple current accounts opened in the names of software, fintech, and technology-related entities — many ostensibly engaged in legitimate business — under the guise of vendor payments, business transactions, and payment gateway services.

Misuse of Banking Correspondent Networks

The ED uncovered the alleged misuse of Banking Correspondent (BC) networks, mobile money transfer agents, Grahak Seva Kendras, Cash Management Services (CMS), local kirana stores, and retail outlets for processing payouts. According to the probe, funds were first transferred to retailers, who passed them to BC agents; the BCs subsequently recharged retailer wallets, which were then used to make payouts to Parimatch users — effectively masking the source and trail of funds.

Investigators further found that certain agents allegedly diverted cash received through CMS channels, adjusting it against RTGS transfers sourced from Parimatch user deposits. That cash was then allegedly moved outside India through hawala channels.

Surrogate Advertising and Hyperlocal Outreach

The ED said Parimatch aggressively promoted its betting platform through surrogate advertisements under the names 'Parimatch Sports' and 'Parimatch News'. Unlike several rival platforms, the company allegedly pursued a hyperlocal marketing strategy — sponsoring teams in local cricket leagues across more than 15 states, as well as hockey and football tournaments. Promotional material was also reportedly circulated via leading quick-commerce applications, displayed during app usage and order placements, and distributed alongside grocery deliveries to attract new users.

Total Assets Frozen So Far

The ED stated that cumulative assets frozen in the Parimatch case have now reached ₹112 crore. Further investigation is underway, officials confirmed.