During investigation in the Mahadev betting app case, the Enforcement Directorate revealed that several dummy accounts and fake bank entities were being used to invest nearly ₹1,100 crore in the stock market. Till the investigation completes, the ED will keep these shares frozen.
On March 8, the probing agency said that it has frozen stock market portfolios worth over ₹1,100 crore in demat accounts linked to the prime accused in the scam, Hari Shankar Tibrewal.
“As on 29.02.2024, the Indian companies under control of associates of Hari Shankar Tibrewal held around securities worth ₹580 crore in stock portfolios . That the foreign entities also invested in India via FPI route and as on 29.02.2024 they were found to be holding securities worth ₹606 crore in stock portfolios,” the ED said in a press release.
According to the ED, Tibrewal was involved in manipulation of stock market in collusion with the promoters of the listed companies.
“Hari Shankar Tibrewal, using his immense capital, used to create temporary fluctuations in share prices, driving them upwards, and then withdraw funds once the prices reached a desirable level,” they said.
The ED also arrested Girish Talreja and Suraj Chokhani for their role in the Mahadev betting app scam case.
According to the ED, Chokhani revealed that the majority of source for these investments was collected bank entries against cash and utilizing the proceeds for investment in share market.
According to an Economic Times report, Chokhani, diverted funds worth ₹432 crore through a betting website ‘skyexchange’ into the stock market. It is believed to have been done shortly after Chokhani’s arrest.
The probing agency suspects that most of those funds were diverted into small and mid capital stocks.
The ED probe in the Mahadev online gaming and betting app has indicated purported involvement of various high-ranking politicians and bureaucrats from Chhattisgarh.
Earlier, the agency said that the alleged illegal funds generated by the Mahadev app were used to pay bribes to politicians and bureaucrats in Chhattisgarh, from where the main promoters and operatives of the app hail.
So far, the ED has seized/frozen movable properties worth ₹1764.5 crore. As many as 11 accused have been apprehended in connection with the Mahadev betting app scam case.
(With agency inputs)
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Published: 13 Mar 2024, 05:22 PM IST