On Thursday, shares of EaseMyTrip experienced a slight uptick after a significant drop the previous day. This modest recovery followed the company’s official statement regarding recent searches conducted by the Enforcement Directorate (ED) at its facilities. The stock climbed by 1.06%, reaching ₹12.32 per share on the National Stock Exchange (NSE), providing a glimmer of hope for investors.
Clarity Amid Confusion
EaseMyTrip’s stock had plummeted by 8.55% on Wednesday due to concerns surrounding the ED’s activities. In a regulatory filing made on Thursday afternoon, the travel platform confirmed that the Directorate of Enforcement had indeed executed a search at one of its locations. Earlier that same day, the firm emphasized that it had no ties to the ongoing investigation linked to the Mahadev Betting App.
- Key Points from EaseMyTrip’s Statement:
- The ED conducted searches at over 50 locations of various individuals and entities.
- EaseMyTrip is not connected to the Mahadev Betting App or any betting operations.
- The company is committed to fully cooperating with the investigation.
Investigative Oversight
According to reports from ANI, officials involved in the ED’s inquiry indicated that no incriminating evidence was uncovered during the searches at EaseMyTrip’s premises. The ED’s investigation focuses on the "Mahadev Online Book," described as a complex syndicate orchestrating illegal betting activities. This network reportedly offers online platforms for user registration and facilitates money laundering via a web of benami bank accounts.
Furthermore, the probe was initiated based on First Information Reports (FIRs) filed by the Chhattisgarh Police. Preliminary findings suggest that operations related to Mahadev Online Book are managed from Dubai, utilizing a franchising system where profits are shared on a 70:30 basis among known associates.
Market Reactions
As of 2:44 PM, shares of EaseMyTrip were trading 0.80% higher at ₹12.20 on the NSE, indicating a slight rebound from the turbulence faced earlier in the week. Investors remain watchful as the situation evolves, with many hoping for a swift resolution to the ongoing investigation.
This latest development serves as a reminder of the challenges faced by companies in the travel sector, particularly in times of regulatory scrutiny. As EaseMyTrip navigates this complex landscape, its commitment to transparency and cooperation may play a critical role in restoring investor confidence.
