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The Enforcement Directorate (ED) announced on Friday that a partner in the Dubai-based firm behind the Mahadev betting app orchestrated the manipulation of share prices in the Indian stock market using profits from the gambling enterprise. The ED has frozen shares valued at Rs 1,100 crore in demat accounts held by his firms.
In a statement released on Friday, the ED disclosed, “During searches in Kolkata… it was revealed that Hari Shankar Tibrewal was complicit in manipulating the stock market in collusion with the promoters of the listed companies. Using substantial capital, Tibrewal induced temporary fluctuations in share prices, artificially inflating them before withdrawing funds at desirable levels.”
In order, the listed companies are:
1. GENSOL
2. TFCI
3. CUPID
4. BCL IND
5. SIGACHI
6. PARACABLES
7. APOLLO MICRO
8. MUFIN
9. SALASAR
10. SERVOTECH POWER
Tibrewal, a Kolkata native, allegedly amassed significant profits from his illicit online gambling and betting business before funneling the proceeds into the stock market through five foreign entities. Following multiple searches last week, the ED is currently in the process of recording statements from promoters of listed companies who utilized Tibrewal’s assistance to manipulate stock prices. As part of the investigation, the ED has also apprehended two associates of the Mahadev group responsible for managing operations in India.
According to an ED source, stockbrokers and other intermediaries maintained connections with Tibrewal and promoters of listed companies. Tibrewal’s funds facilitated share price manipulation, resulting in substantial profits for both parties at the expense of small investors. The source added, “The ED has identified all those involved in the chain, including the promoters, and will summon them to provide statements.”
The ED press release also noted that during searches at the premises of Tibrewal’s associate Suraj Chokhani and others in Kolkata, it was discovered that the majority of funds for share market investments stemmed from cash transactions in Indian companies controlled by Tibrewal. The Indian companies under Tibrewal’s control held securities valued at Rs 580 crore in stock portfolios, while foreign entities held securities worth Rs 606 crore.
The Mahadev group, established a few years ago by Saurabh Chandrakar and Ravi Uppal along with their partners, came under scrutiny after Chandrakar spent over Rs 200 crore on his wedding in Dubai, which featured performances by several Bollywood celebrities. Last year, the ED initiated action against the group, leading to restrictions on Chandrakar and Uppal’s movement by Dubai authorities at India’s request. The Indian government is now seeking to extradite them.
The Enforcement Directorate has uncovered extensive manipulation of equities in the Indian stock market using proceeds from a betting syndicate operated by Dubai-based promoters of Mahadev Online Book, an illegal betting platform. Former Chhattisgarh chief minister Bhupesh Baghel and several top bureaucrats from the state are under investigation. The probe revealed that the accused held securities worth over Rs 1,186 crore, including stocks worth Rs 580 crore already attached by the agency in India, while stocks worth Rs 606 crore were invested by foreign portfolio investments.
Kolkata-based businessman Hari Shankar Tibrewal, currently residing in Dubai, has been implicated in manipulating India’s stock markets in collaboration with various listed firms, according to the ED. He is a partner of Mahadev Online Book promoters Sourabh Chandrakar and Ravi Uppal, both detained by Dubai police pending a deportation request from India.
Sources : MoneyControl
