ED Seizes ₹940 Crore of Assets from Vikas Garg Amid Mahadev App Scam Probe

ED Seizes ₹940 Crore of Assets from Vikas Garg Amid Mahadev App Scam Probe​

The Enforcement Directorate (ED) has provisionally attached over ₹940 crore worth of assets belonging to businessman Vikas Garg. The action targets properties and holdings linked to his companies, including Eraaya Lifespaces, following an investigation into proceeds potentially derived from the Mahadev betting app scam. This high-stakes move places scrutiny on the corporate activities undertaken by Mr. Garg in the context of a major overseas acquisition.

The attachment order, issued by the ED, Chhattisgarh, includes residences and properties spanning multiple locations, including Delhi, Goa, and Nainital. The agency alleges that these assets are linked to proceeds generated from the illegal Mahadev betting app.

Allegations: Proceeds of Crime Linked to Betting Scam​

A central allegation in the ED's probe is that Garg utilized the ₹940 crore worth of proceeds of crime to fuel the acquisition of Ebix. This connection directly links the company’s corporate funding to the illicit gains generated by the Mahadev app, which reportedly produced illegal gains amounting to ₹6,000 crore.

The money laundering aspect involves a Dubai-based individual, Nitin Tibrewal, as alleged by the ED. The key accused in the broader Mahadev scam case are Saurabh Chandrakar and Ravi Uppal, both based in Dubai.

Eraaya Lifespaces and the Ebix Acquisition​

Vikas Garg is the promoter of three listed companies: Vikas Ecotech, Vikas Lifecare, and Eraaya Lifespaces. In 2024, Eraaya Lifespaces made a high-profile overseas acquisition of Ebix, a software company that had recently declared Chapter 11 bankruptcy in the US.

The ED has attached more than 75 percent held by Eraaya Lifespaces in the bankrupt tech firm Ebix. This move comes as the acquisition is conducted amidst intense financial scrutiny regarding its funding sources.

Impact on Retail Investors and Corporate Structure​

This agency action will have a direct impact on approximately 23,000 retail investors who invested in Eraaya Lifespaces. The ED probe focuses heavily on how these funds were utilized to facilitate the Ebix acquisition.

Furthermore, over 12 lakh retail investors stand indirectly affected by this development. This includes 7.8 lakh investors in Vikas Lifecare and 5.6 lakh investors of Vikas Ecotech. Although no action has been initiated against those two companies, Garg's family maintains a promoter stake in both entities.

Background on Ebix and Past Corporate Scrutiny​

Ebix was established as Delphi Information in Atlanta, Georgia, back in 1976, before rebranding to Ebix in 1999. The company specialized in financial technology solutions for exchanges, lenders, and insurance companies. It collapsed when it defaulted on a $617-million loan in December 2023.

Garg has previously faced multiple investigations regarding corporate governance and regulations. In November 2025, ED conducted raids related to an alleged ₹190 crore customs fraud concerning the illegal import of betel nuts using forged export papers.

Governance Issues and Investor Complaints against Eraaya​

Investor complaints raised in January 2025 highlight serious governance lapses within Eraaya Lifespaces. Investors alleged that Garg controlled the company in the background, despite not classifying himself as a promoter during early stages of the acquisition.

The investors further claimed that garg was considered a politically exposed person (PEP) and thus did not lead the process publicly. They also pointed out that the board had removed independent directors Vivek Dave and Humanshu Mody on January 31, 2025, alleging instability.

The Curious Trajectory of Eraaya Stock Performance​

While Eraaya as a standalone entity generates modest revenue, its stock experienced extreme volatility during the period leading up to the Ebix acquisition. It previously touched an all-time high of ₹316 in October 2024.

However, subsequent performance has seen the stock drop significantly, trading at ₹24 apiece after losing two-thirds of its value. Revenue also exhibited a rapid transition, surging from just ₹20 lakh in FY23 to a topline of ₹297 crore in FY24 (during the acquisition). Post-FY24, revenue declined sharply to ₹21.4 crore in FY25 and further worsened to ₹7 crore in FY26.