India ED Traces $22.5M in Parimatch Funds to Singapore Investment Scheme

India's Enforcement Directorate is investigating whether illegal betting networks moved more than ₹20 billion, approximately $225 million, out of the country by disguising gambling proceeds as overseas investments in technology and artificial intelligence companies.

The suspected mechanism was identified during the agency's investigation into Parimatch, an offshore betting platform that Indian authorities say continued serving local customers through mirror websites despite being prohibited in the country.

In the Parimatch case alone, investigators traced more than ₹2 billion, approximately $22.5 million, in suspected proceeds of crime transferred from two Delhi-based companies to entities in Singapore as overseas direct investment.

The allegations remain part of an ongoing Enforcement Directorate investigation and have not been established by a final court ruling.

Parimatch Investigation Revealed Investment Structure

According to people familiar with the investigation cited by The Economic Times, the ED believes betting proceeds were first routed through Indian companies before being transferred to recently incorporated foreign entities.

Investigators say both the Indian and overseas businesses involved in some of the transactions showed limited evidence of genuine commercial operations.

The structures allegedly used nominal directors and multiple corporate layers before funds reached their ultimate beneficiaries.

In the Parimatch investigation, the ED identified more than ₹2 billion in remittances from two Delhi companies to Singapore entities that investigators believe had limited commercial substance.

The agency suspects the investment structure was used to give transfers linked to illegal betting revenue the appearance of legitimate cross-border business activity.

AI Companies Allegedly Valued Without Operating History

The wider investigation is examining investments presented as funding for technology businesses, including companies claiming to develop artificial intelligence products and services.

According to an ED official cited in the report, some target companies were assigned high valuations despite having little operating history, few assets and limited or no revenue.

Investigators are examining whether discounted cash flow models based on projected future earnings were used to justify those valuations.

The ED believes that presenting the transfers as investments in fast-growing technology sectors can provide an apparently legitimate explanation for moving significant amounts of money abroad.

Once funds reach overseas companies, the agency suspects they can be moved through additional entities before reaching individuals connected with the betting operations.

The role of company secretaries and other professionals involved in preparing corporate structures and valuations is also under examination.

ED Suspects More Than ₹20 Billion Left India

The Parimatch transactions form part of a much broader suspected money flow.

The Enforcement Directorate estimates that illegal betting syndicates may have transferred more than ₹20 billion overseas using similar investment structures.

That figure is an investigative estimate rather than a confirmed total of criminal proceeds.

The agency is also expected to share relevant findings with the Reserve Bank of India as it examines whether foreign investment rules and financial controls were circumvented.

In September, the ED searched locations in Maharashtra, Delhi NCR, Rajasthan and Gujarat as part of the Parimatch investigation.

The searches covered payment companies, chartered accountants and company secretaries suspected of helping convert gambling proceeds into cash or move funds overseas through remittances and investment transactions.

Parimatch Probe Extends Across Payments and Marketing

Indian authorities have been expanding investigations into the infrastructure used by offshore betting platforms rather than focusing only on the gambling websites themselves.

Previous actions connected with Parimatch have examined payment processing, surrogate advertising, corporate entities and third parties allegedly used to reach Indian players.

The ED investigation has also estimated that Parimatch generated more than ₹30 billion from Indian users over a one-year period, according to people familiar with the probe.

That claim remains part of the agency's investigation.

The latest findings illustrate the financial enforcement challenge created by offshore gambling networks. Payments can move through domestic companies, professional intermediaries and overseas investment structures before investigators determine whether they are connected with betting activity.

For India's authorities, the case is therefore expanding from the operation of illegal gambling platforms into the corporate and financial infrastructure allegedly used to remove proceeds from the country.