India's ED raids multiple locations related to Parimatch, illegal online betting probe under Prevention of Money Laundering Act (PMLA), 2002
Fintech Accounts, CMS Accounts of Banks, Current account of Software & Technology Entities, Wallet recharge was used for complex layering of betting & gambling funds. India has enacted a sweeping ban on all real money gaming. Under the Promotion and Regulation of Online Gaming Act (PROGA), the government strictly prohibits online money games, fantasy sports leagues, and casual games with entry fees or monetary stakes, regardless of whether they are classified as games of skill or chance.
May 28, 2026
The Enforcement Directorate (ED), Mumbai Zonal Office, conducted search operations on 26 May 2026 (reported 27 May) under the Prevention of Money Laundering Act (PMLA), 2002, at 17 locations across Maharashtra, Rajasthan, Delhi, Gujarat, Daman, and Uttar Pradesh. These were part of an ongoing investigation into the Cyprus-based illegal online betting platform Parimatch.
Probe was based on an FIR registered by the Cyber Police Station, Mumbai, against Parimatch.com for allegedly duping users through its online betting platform. The platform is accused of defrauding investors by luring them with promises of high returns and is estimated to have generated over ₹3,000 crore in a single year. Parimatch is an international online betting and gambling platform founded in 1994 in Kyiv, Ukraine. It started as a traditional bookmaker and launched its online betting website in 2000, becoming one of the early players in the CIS region. Today, it is headquartered in Limassol, Cyprus, with Sergey Portnov as the current owner.
Key findings from ED's investigation:
- Parimatch and its associates allegedly operated through a complex network of mule accounts, payment intermediaries, and financial inclusion channels to collect, layer, and transfer user funds. User withdrawals were often not paid directly from platform-controlled accounts. Instead, deposits from other users were routed to winners' accounts or UPI IDs in multiple tranches to mask the money trail.
Complex Layering, Fintech, Banking Correspondent Network & CMS
- Deposits and payouts were routed through current accounts of software, fintech, and technology entities (engaged in legitimate business) under the guise of vendor payments, business transactions, or payment gateway services.
- Misuse of Banking Correspondent (BC) networks, Grahak Seva Kendras, Cash Management Services (CMS), local kirana stores, and retail outlets for payouts.
- Layered mechanisms involving retailers, BC networks, and wallet recharges to conceal fund sources. Some agents allegedly diverted CMS cash and adjusted it against RTGS transfers from Parimatch deposits, with diverted cash moved abroad via hawala channels.
- The platform promoted betting via surrogate advertisements under names like "Parimatch Sports" and "Parimatch News", hyperlocal marketing (sponsoring local cricket, hockey, and football teams in over 15 states), quick-commerce app ads, and promotional materials with grocery deliveries. India has a prominent market of Quick Commerce apps - prominent names include Zepto, Blinkit, Flipkart Minutes, etc.
Key actions from the searches (per ED statement):
- Movable assets worth approximately ₹1.56 crore seized, including cash of around ₹1.2 crore.
- Funds amounting to approximately ₹3.8 crore frozen in various bank accounts.
- Various incriminating documents and digital devices recovered and seized.
So far in this case, the ED has frozen assets worth ₹112 crore (including prior actions). Further investigation is ongoing.