EaseMyTrip CEO Nishant Pitti being probed in Mahadev betting app scam; firm denies allegations
Nishant Pitti has been accused of being aware of the activities of Sky Exchange, which is an illegal betting platform linked to the Mahadev app.
The chief executive officer of travel firm EaseMyTrip, Nishant Pitti, has come under scrutiny in the investigation into the Mahadev Betting App scam by the Enforcement Directorate (ED), reported the Economic Times.
The company, however, “categorically and unequivocally” denied the allegations reported in connection with our Nishant Pitti.
According to the probe agency, Pitti may have been in cahoots with a group of operators who allegedly manipulated stock prices of 25 publicly traded companies using the money from the illegal betting business, the report said, adding that this may have been done with help and knowledge of the promoters of these companies.
What are allegations against Nishant Pitti?
According to the documents submitted by the Enforcement Directorate to the Adjudicating Authority, the official body that oversees money laundering cases, Nishant Pitti faces four major allegations-
- He was allegedly aware of the activities of Sky Exchange, which is an illegal betting platform linked to the Mahadev app.
- The ED alleges that Pitti’s company, EaseMyTrip, made payments to two shell firms linked to Sky Exchange. Shell companies are businesses that exist only on paper and are often used to hide the movement of money.
- The ED seized ₹7 lakh cash at Pitti's home during a raid in April. The probe agency believes the money could be possible proceeds of crime and can’t rule that the money might be linked to Sky Exchange's illegal operations.
- Pitti is accused of allegedly being in touch with an operator working with company promoters to manipulate stock prices. The manipulation was reportedly done by obtaining beneficial shareholding details, called Benpos, by the promoters. Promoters have access to this information before quarterly disclosures, “creating an information arbitrage opportunity for in-step trading,” the report said.
What Company said
In a statement released later, the company said, “We categorically and unequivocally deny the allegations reported in connection with our Founder and Chairman, Mr. Nishant Pitti, concerning the so-called Mahadev app betting case. These claims are entirely baseless, misleading, and devoid of factual merit.”
“Mr. Pitti has had no involvement, direct or indirect, with any illegal betting operations or entities related to the Mahadev app. EaseMyTrip, as an organization, upholds the highest standards of corporate governance and full compliance with all applicable laws and regulations. We take these allegations seriously and are fully cooperating with the authorities to ensure that the facts are established transparently and expeditiously,” the statement said.
It aded: “To clarify, the two entities independently purchased EaseMyTrip shares through the open market in May 2021. Dividends of around ₹5 lakhs were paid to them in the normal course in December 2021, as per shareholder rights. There has been no other transaction or association with these entities.”
“This unwarranted speculation undermines the trust of our stakeholders and misrepresents the integrity of our leadership. We urge media outlets and the public to refrain from drawing conclusions based on unverified and unsubstantiated information,” the statement read.
What Nishant Pitti said
When reached out by the Economic Times to respond to the allegations, Nishant Pitti denied all of them.
“I don’t know this person, and we haven’t made any payments to these companies since 2017. I’ve never even heard of these names before,” the report quoted him as saying.
On the ₹7 lakh recovered by the ED from his home, Pitti said, “There are eight earning members in my family. We’ve filed income tax returns of over ₹1,000 crore, and our declared cash holdings are more than ₹70 lakh. The ₹7 lakh that was found is part of that declared amount.”
Pitti is now a respondent in the case before the Adjudicating Authority under the Prevention of Money Laundering Act (PMLA). Under the act, the ED is permitted to hold on to any assets seized during probes.
According to the ED’s report, the data recovered from the laptop belonging to Prashant Bagri, who is linked to the scam, shows Pitti listed as an agent for Sky Exchange. The data also shows that Pitti’s firm EaseMyTrip sent money to two reportedly shell companies in 2021 - Nischay Trading Pvt Ltd and Silvertoss Shoppers Pvt Ltd.
Bagri also reportedly told investigators that he was in regular touch with Pitti about his firm’s Benpos. ED’s investigation also points out that the people involved in the betting scam approached promoters of 25 listed companies and used illegal proceedings worth ₹350 crore to influence stock prices, the report said.
These are just the allegations by the probe agency and it is to be noted that they require validation through judicial proceedings.
