ED Probe on Parimatch Reaches Zepto Deliveries.. L

The Enforcement Directorate (ED) has widened its probe into banned betting site Parimatch, bringing quick-commerce startup Zepto under scrutiny after flyers promoting Parimatch were allegedly slipped into customer orders. Zepto denies any operational role, claiming the ads were placed via a third-party agency in March 2025.

Investigation has further revealed that the platform promoted betting‑related advertisements through leading quick‑commerce applications and circulated promotional material along with grocery deliveries to attract and onboard new users. 

What Happened

• ED probe: Authorities are investigating offshore betting operations linked to Parimatch, banned in India since 2022.
• Zepto involvement: Flyers and ads promoting Parimatch were allegedly distributed through Zepto’s delivery network.
• Government advisory: A 2022 Ministry of Information & Broadcasting warning explicitly prohibited platforms from carrying betting ads.
• Money laundering angle: The ED is examining possible violations of foreign exchange rules and laundering of betting funds.

Zepto’s Response

• Denial of operational role: Zepto insists it had no direct relationship with Parimatch and that the campaign was managed externally by a third-party media agency.
• Cooperation with ED: The company says it has shared all requested information and connected investigators with the external agency.
• Clarification: Zepto emphasized it was not involved in betting, gaming, payments, or user acquisition activities.

Regulatory Context

• Surrogate branding: Parimatch allegedly continues operations in India under names like Parimatch Sports and Parimatch News, blurring lines between sports media and betting.
• Quick-commerce scrutiny: ED has also contacted other delivery platforms to check for similar associations.
• Legal framework: Under the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), promoting betting ads can trigger criminal liability.

Key Takeaways

Aspect	Details
ED’s focus	Offshore betting, money laundering, FX violations
Zepto’s role	Flyers/ad campaigns allegedly linked to Parimatch
Zepto’s stance	No direct involvement; third-party agency handled ads
Risk for Zepto	Reputational damage, compliance tightening, IPO overhang
Industry impact	Quick-commerce platforms may face stricter advertiser verification

Risks & Implications

• Reputational risk: Even without direct involvement, association with betting ads could hurt Zepto’s brand, especially ahead of IPO plans.
• Compliance tightening: Platforms may need stricter advertiser vetting, similar to broadcasters and publishers.
• Legal exposure: If ED finds liability, Zepto could face penalties under PROGA and FEMA.

Aspect	Details
ED press release	Issued May 27, 2026
Key finding	Betting ads promoted via quick‑commerce platforms
Zepto’s role	Flyers placed via third‑party agency
ED action	17 searches, ₹1.2 crore cash seized, ₹3.8 crore frozen
Legal risk	PROGA criminalises betting ad promotion

Australia’s AirTrunk to Invest $30B in India, One of the Largest Commitments to S. Asia’s Digital Infra Sector

Blackstone-backed hyperscale operator AirTrunk has announced a landmark plan to invest $30 billion (₹3 lakh crore) in India by 2030, building over 5 GW of data centre capacity across multiple states to support AI and cloud infrastructure growth. This marks one of the largest digital infrastructure commitments in India’s history and to the South Asian nation’s digital infrastructure sector.

AirTrunk is a Sydney-based hyperscale data centre operator, founded in 2015 by Robin Khuda, and acquired by Blackstone and CPP Investments in 2024. It has rapidly expanded across Asia-Pacific and the Middle East, positioning itself as a leading provider of large-scale, sustainable cloud infrastructure.

In April this year, AirTrunk acquired Lumina CloudInfra to gain a 600 MW pipeline in Mumbai, Chennai, and Hyderabad. AirTrunk is one of the largest hyperscale operators in the Asia-Pacific & Middle East region, serving global cloud providers and enterprises.

Key Details of AirTrunk’s India Investment

• Scale of Investment: $30 billion (₹3 lakh crore) by 2030
• Capacity Target: More than 5 GW of hyperscale data centres
• Backers: Supported by Blackstone and CPPIB
• Entry into India: Acquired Lumina CloudInfra in April 2026 (600 MW pipeline)
• Strategic Focus: Expansion across states, renewable energy, subsea cable access
• Government Support: Welcomed by PM Modi

Why India?

• AI & Cloud Demand: India emerging as global hub
• Policy Frameworks: IndiaAI Mission (₹10,000 crore), Semiconductor Mission (₹76,000 crore)
• Talent & Energy: Skilled workforce and renewable energy
• Geopolitical Advantage: Safe harbour for investments

Economic & Strategic Impact

• Job Creation: Tens of thousands expected
• Supply Chain Localization: Boost to domestic suppliers
• Global Positioning: Strengthens India’s AI role
• Regional Competition: Competing with Google, Reliance, Adani

Comparison of Mega Data Centre Investments in India

Company	Investment Size	Capacity Target	Location Focus	Timeline
AirTrunk	$30B (₹3 lakh crore)	5 GW	Multi-state (Mumbai, Chennai, Hyderabad + expansion)	By 2030
Google	$15B	1 GW	Vizag	Ongoing
Reliance	₹1.08 lakh crore ($13B)	Giga-scale campus	Vizianagaram	Approved May 2026
Adani	$100B	Hyperscale AI-ready	Pan-India	By 2035

Risks & Challenges

• Power & Water Security: Renewable energy and desalination needed
• Regulatory Approvals: Streamlined clearances critical
• Global Competition: Competing with Singapore, UAE, US
• Execution Risk: Scaling from 600 MW to 5 GW

AirTrunk operates hyperscale data centres in Australia, Singapore, Japan, Hong Kong, Malaysia, and India. The Australian company provides colocation solutions for cloud, content, and enterprise customers, with real-time hyperscale capacity deployment.

AirTrunk was officially acquired by Blackstone and CPP Investments in December 2024. The deal gave Blackstone majority control of the Sydney-based hyperscale operator, marking one of the largest private equity transactions in Asia-Pacific’s digital infrastructure sector.This acquisition positioned AirTrunk to accelerate its Asia-Pacific and Middle East expansion, including its landmark $30B India investment plan by 2030.

Andhra Pradesh Invites Russian Space, Tech Giants to Invest in Tirupati Space City

Andhra Pradesh has formally invited Russian space, aerospace, and technology firms to invest in the state, unveiling plans for a massive “Tirupati Space City” near Sriharikota to anchor future Indo‑Russian cooperation.

The invitation to Russian space and tech firms was accompanied by an official statement at the St. Petersburg International Economic Forum 2026, where IT Minister Nara Lokesh unveiled the state’s “Space Policy 4.0” and plans for the 3,000‑acre Tirupati Space City.

Tirupati Space City project is designed for space launch vehicle assembly, satellite manufacturing, avionics production, and deep‑tech innovation. It is spread across 2,800–3,000 acres and near Sriharikota, which is India’s primary spaceport, home to the Satish Dhawan Space Centre (SDSC‑SHAR), from where ISRO launches most of its rockets, including PSLV, GSLV, and the heavy‑lift LVM3. It has hosted over 100 missions, including Chandrayaan lunar probes and the Mars Orbiter Mission.

The minister, Lokesh, pitched AP as a manufacturing and technology hub for Russian firms under India’s Atmanirbhar Bharat initiative. He recalled historic Indo‑Russian cooperation from Aryabhata (1975) to Gaganyaan.

Key Highlights of the Invitation

• Tirupati Space City: Spread across 2,800–3,000 acres near Sriharikota. Focus on launch vehicle assembly, satellite manufacturing, avionics production, and deep‑tech innovation. Direct access to India’s only operational spaceport, the Satish Dhawan Space Centre, which has hosted 100+ missions.
• Space Policy 4.0: Framework to attract $4 billion in investment. Dedicated “Space Cities” for research, satellite development, and next‑gen technologies.
• Russia–India partnership: Lokesh recalled historic cooperation from Aryabhata (1975) to Gaganyaan. Highlighted Russian firms like RUSAL and Rosneft‑backed Nayara Energy as successful models of industrial collaboration.

Strategic Sectors for Russian Investment

• Aerospace & Defence: Drone manufacturing, avionics, naval systems.
• Semiconductors & Microelectronics: Advanced manufacturing corridor in Sri Sathya Sai District near Bengaluru.
• Quantum Computing & Healthcare Tech: Emerging opportunities in frontier technologies.
• Energy & Commodities: Building on AP’s role as a major exporter of rice and shrimp to Russia.

Comparison Table: Andhra Pradesh’s Offerings

Initiative	Focus Area	Scale/Impact
Tirupati Space City	Launch vehicles, satellites, avionics	2,800–3,000 acres, $4B target
Space Policy 4.0	Research, deep‑tech innovation	Dedicated “Space Cities”
Advanced Manufacturing Corridor	Aerospace, semiconductors, drones	Near Bengaluru, strategic location
Energy & Commodities	Alumina, oil, rice, shrimp	Existing Russia trade links

Risks & Considerations

• Geopolitical sensitivities: Russian investments may face scrutiny under global sanctions regimes.
• Infrastructure readiness: Large‑scale projects like Tirupati Space City will require phased development and regulatory clarity.
• Competition: Other Indian states (e.g., Karnataka, Telangana) are also pitching themselves as tech hubs.

This move positions Andhra Pradesh as India’s gateway for Russian space and tech firms, leveraging its unique spaceport at Sriharikota and aligning with the India‑Russia $100B trade target by 2030. For Russia, it offers a foothold in India’s fast‑growing space economy; for AP, it promises jobs, technology transfer, and global visibility.

Hackers Hijack Instagram Accounts Through Meta’s AI Flaw

Meta’s AI-powered Instagram support bot was exploited by hackers, allowing them to hijack accounts—including Barack Obama’s White House account, Sephora, and U.S. Space Force officials—simply by asking the bot to change recovery details. Meta has patched the flaw, but the incident highlights serious risks in using AI for sensitive security functions.

Meta launched its AI-powered Instagram Support Bot in December 2025, with a global rollout expanding in March 2026. It was designed to provide 24/7 account help, including password resets, scam reporting, and privacy management, but was later exploited by hackers due to weak safeguards.

The Instagram Support Bot was meant to simplify account recovery, but its exploitation shows how AI-driven customer support can become an attack surface if not properly safeguarded.

What Happened

• Exploit Method: Hackers tricked Meta’s AI support chatbot into linking a target Instagram account to a new attacker-controlled email.
• Password Reset: Once linked, the bot facilitated a password reset, locking out the legitimate owner.
• Bypassing Safeguards: Attackers used VPNs to spoof locations and bypass fraud detection.
• No Alerts: Victims did not receive SMS, push notifications, or warning emails during the takeover.

High-Profile Accounts Compromised

Account	Impact
Obama-era White House Instagram (@obamawhitehouse)	Defaced with politically inflammatory content
Sephora (official account)	Hijacked and disrupted
U.S. Space Force Chief Master Sergeant John Bentivegna	Personal account compromised
Rare “OG” handles (@hey, @jowo)	Valued at over $1M in underground markets

Why It Matters

• AI Security Risks: The bot had backend privileges but lacked identity verification safeguards.
• Prompt Injection Vulnerability: Attackers exploited natural language prompts to override intended security checks.
• Broader Trend: Similar AI manipulation attacks have occurred elsewhere (e.g., dealership chatbots offering cars for $1).

Meta’s Response

• Patch Released: Meta confirmed the vulnerability was fixed on June 1, 2026.
• Account Recovery: Impacted accounts are being secured, though Meta has not disclosed the total number affected.
• Future Safeguards: Renewed scrutiny over reliance on AI for account recovery and password management.

What Users Should Do

• Enable Two-Factor Authentication (2FA): Still critical for other attack vectors.
• Check Recovery Settings: Verify your email and phone number linked to Instagram.
• Monitor for Alerts: Watch for suspicious login attempts or password reset notifications.
• Report Issues: Use Meta’s official support channels immediately if you suspect compromise.

Key Takeaway

This breach shows that AI-driven customer support systems can become attack surfaces if not properly safeguarded. Meta’s incident is a cautionary tale for all platforms deploying AI in sensitive security workflows.

Apple to Submit India Financials in Antitrust Probe, Faces Global Turnover Penalty Risk

Apple has agreed to submit its India‑specific financials to the Competition Commission of India (CCI) by June 25, 2026, marking a turning point in a long‑pending antitrust case over App Store billing practices. The move brings the investigation closer to a potential penalty decision.

A confidential CCI order, reviewed by Reuters, showed Apple last month agreed to supply its India financials, which is typically needed by the watchdog for calculatiing the penalty.

Apple’s lawyer asked the CCI at a May 21 hearing for a ”final extension” until June 25 to file its ”India-specific financial information”, and ”the commission considered the request and granted” it, the order noted.

Key Developments

• Case origin: Filed in 2021 by Match Group (Tinder) and Alliance of Digital India Foundation (ADIF), alleging anti‑competitive App Store policies
• CCI findings (2024): Apple was found to have abused its dominant position in the iPhone apps market; Apple denied wrongdoing
• Financials submission: Apple’s lawyer requested a final extension until June 25, 2026 to file India‑specific financial data; CCI granted the request
• Penalty implications: CCI needs financials to calculate fines; penalties may be based on global turnover, exposing Apple to fines up to USD 38 billion

Apple in India

• Market share: iPhone now accounts for 9% of India’s smartphone market, up from 2% five years ago
• Manufacturing: India has become a key hub as Apple diversifies beyond China, with production expanding via Tata Electronics and Foxconn
• Regulatory climate: India’s new antitrust penalty law is among the toughest globally, making this case Apple’s most high‑profile regulatory challenge in India

Strategic Implications

• For Apple: Risk of multi‑billion‑dollar fines if penalties are calculated on global turnover; pressure to adjust App Store billing practices in India
• For India’s digital ecosystem: Strengthens startup advocacy groups like ADIF; could reshape in‑app payment rules; signals India’s intent to enforce global‑scale accountability

Timeline Snapshot

Event	Date	Details
Case filed by ADIF & Match Group	2021	Alleged anti‑competitive App Store policies
CCI investigation concludes	2024	Found Apple abused dominance
Apple resists financial disclosure	2024–2025	Argued penalties should not use global turnover
CCI grants final extension	May 21, 2026	Deadline set for June 25
Financials submission due	June 25, 2026	Key step toward penalty decision