Mumbai: The Enforcement Directorate’s investigation into the Mahadev betting app linked Skyexchange money laundering network has opened a fresh line of scrutiny around an EBIX linked corporate acquisition, with the agency alleging that businessman Vikas Garg used a purportedly forged and backdated addendum to facilitate the transfer of a 51% stake in Ebix International Holdings Ltd,a UK subsidiary of Ebix Inc, to Vikas Lifecare Ltd (VLL), another company controlled by him, as part of an alleged money laundering arrangement involving proceeds of crime linked betting syndicate. The agency has alleged that the document was forged and backdated to facilitate the transfer of a valuable Ebix subsidiary to entities controlled by Garg and project the asset acquired using alleged proceeds of crime as untainted property.
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The agency’s central contention is that the addendum, dated August 16, 2024, was executed before Garg’s company, Eraaya Lifespaces Ltd, had acquired Ebix Inc, with the US bankruptcy court approving the acquisition only on August 31, 2024.
According to the prosecution complaint, an initial agreement dated May 24, 2024, was signed between Garg, (represented by Eraaya Lifespaces Ltd and VLL), and Ebix founder Robin Raina, (representing himself and Vitasta Software India Pvt Ltd) for the acquisition of Ebix Inc.
However, the ED has alleged that a subsequent addendum dated August 16, 2024, was executed between Eraaya Lifespaces Ltd and VLL, incorporating what the agency described as a bizarre default clause linked to VLL’s investment of Rs 292.54 crore in the acquisition. Under the arrangement, if Eraaya failed to provide VLL with shareholding proportionate to its investment, it was required to refund the amount with interest. In the event of a failure to repay, VLL would be entitled to acquire the entire 51 percent stake in Ebix International Holdings Ltd, the UK subsidiary of Ebix Inc, according to the prosecution complaint.
The ED has flagged the timing and circumstances of the addendum, according to federal investigators, the disputed addendum was executed on August 16, 2024, whereas the US Bankruptcy Court formally approved Eraaya Lifespaces Ltd takeover bid for Ebix Inc 15 days later, on August 31, 2024. The agency’s central contention is that Eraaya did not legally own Ebix Inc or its UK subsidiary on the date the addendum was signed, rendering it legally impossible to pledge, assign, or transfer the subsidiary's controlling equity two weeks prior to acquiring the parent entity.
To examine the circumstances surrounding the document, the ED conducted a search at VLL’s office premises on July 30, under Section 17 of the PMLA. During the search, ED seized board meeting minutes for the 2024 to 2025 financial year.
According to the prosecution complaint, agency examination of the minutes found no discussion or approval relating to the August 16, 2024, addendum by VLL’s board of directors.
During the same search, the ED recorded the sworn statement of VLL Company Secretary Sanjay Jaiswal, When questioned about the board’s approval for the addendum, Jaiswal stated that the document had not been discussed at a board meeting, according to the complaint.
The ED is relying on the timing of the addendum, the absence of a corresponding board discussion in VLL’s minutes and the company secretary’s statement as part of its allegation that te document was forged and backdated to facilitate the transfer of the UK subsidiary to another entity controlled by Garg.
VLL subsequently received the 51 per cent stake in Ebix International Holdings Ltd in 2025, after Eraaya failed to repay the amount by January 31, 2025. VLL invoked arbitration, and the proceedings were settled through a settlement deed dated May 2025.
Garg was arrested by the ED on July 14 and is currently in judicial custody. According to the agency, money generated through betting activities was routed to Garg and entities linked to him through foreign companies allegedly controlled by betting operator H.S. Tibrewal. The ED has alleged that Garg and his entities received Rs 765.77 crore through these companies. The funds came through foreign portfolio investment (FPI), foreign direct investment (FDI) and other investment routes before being transferred to Eraaya Lifespaces Ltd. According to the agency, the money was used to acquire a 97.58 per cent stake in Ebix Inc.
Earlier, ED had provisionally attached assets worth approximately Rs 940.77 crore linked to Garg, members of his family and entities allegedly owned or controlled by them. The attached portfolio included substantial shareholding associated with the EBIX acquisition. The agency has alleged that proceeds arising from illegal betting were routed through Garg-controlled entities, layered across financial transactions and eventually deployed in shares, securities and other assets.
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