The Directorate of Enforcement (ED) has asked quick commerce platform Zepto to join its money laundering investigation into Parimatch, a Cyprus-based offshore betting platform banned in India in 2023, over advertisements that ran on Zepto’s app and through its delivery network, according to medianama.com. The Economic Times reported the development, which follows media reports flagging the ads in March 2025.
The ED’s inquiry focuses on whether Zepto can avoid liability by claiming that an external ad agency placed the Parimatch advertisements, rather than the company itself. This challenges the defence that platforms can disclaim responsibility if ads are booked through third parties. The investigation tests the application of India’s betting ad rules, which currently hold broadcasters, news publishers, and online advertisement intermediaries accountable for banned content.
This case highlights the regulatory complexities as quick commerce platforms like Zepto sell ad space not only on their apps but also via flyers inserted in delivery bags. The Ministry of Information and Broadcasting’s rules were drafted before grocery apps began such advertising practices. Under the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), promoting betting ads is criminalised, raising the stakes for platforms hosting such content and potentially removing safe harbour protections.
The ED’s probe into Zepto’s role in the Parimatch ad campaign marks a critical test of liability for quick commerce platforms in India’s evolving regulatory environment. The investigation continues as authorities assess whether Zepto breached laws by allowing banned betting ads on its platform and delivery channels, according to medianama.com.