Hari Shankar Tibrewala, one of the names associated with the Mahadev Online Betting Scam and now a subject of interest for the Enforcement Directorate, is in the eye of a share market storm.
According to multiple recent reports, Tibrewala, who hails from Kolkata but currently resides in Dubai, is a huge hawala operator who has partnered with the promoters of Mahadev Online Book.
According to a report by The Morning Context, Tibrewala has direct and deep links with solar utility company Gensol Engineering. Gensol Engineering is also related to the all-electric taxi startup BluSmart; both have the same promoter, Anmol Singh Jaggi.
The ED said, "ED conducted searches at his known premises and at the premises of his ( Tibrewala's) associates. The searches revealed that Tibrewala owned and operated one of the illegal betting websites, skyexchange.
Through his Dubai-based entities, he invested the betting proceeds in the Indian stock market using the FPI route. He had also employed many of his associates as directors in various companies involved in layering the betting proceeds by investing them in the stock market."
"He was also involved in large-scale hawala movement of the betting funds. Accordingly, security holdings worth Rs 580.78 crore in the name of the entities beneficially owned by Tibrewala have been frozen by ED under PMLA," the agency said.
Manipulation In Stock Prices
According to reports, after numerous searches, the ED is currently in the process of obtaining statements from the promoters of listed companies who allegedly utilised Tibrewala's aid to manipulate stock prices.
In a release last week, the ED said Tibrewala used Suraj Chokhani, the Indian connection to the Mahadev Online Betting Scam, to launder and hide the proceeds of the crime under the guise of share investments for Indian companies.
The release said, "The majority of the sources for these investments have been collected by receiving bank entries against cash in these companies and utilising the proceeds for investment in the share market. As of 29 February 2024, the Indian companies under the control of Tibrewala's associates held around securities worth Rs580 crore in stock portfolios. Foreign entities also invested in India via the FPI route, and as of 29 February 2024, they were found to be holding securities worth Rs 606 crore in stock portfolios."
"The searches in Kolkata also revealed that Tibrewala was also involved in manipulating the stock market in collusion with the promoters of the listed companies. Tibrewala, using his immense capital, created temporary fluctuations in share prices, driving them upwards, and then withdrew funds once the prices reached a desirable level," ED says.
What is Mahadev Online Book
Mahadev Online Book is a syndicate that operates as an umbrella organisation, facilitating the establishment of online platforms for illegal betting websites. These platforms are utilised to enrol new users, generate user IDs, and launder money through a complex network of anonymous bank accounts.
The ED investigation unveiled that Mahadev Online Book conducts its operations from Dubai by franchising 'panel/branches' to their familiar associates with a profit-sharing ratio of 70%-30%.
Additionally, the primary promoters of Mahadev Online Book are also involved as partners or promoters in various other online betting platforms, such as 'Reddy Anna' and 'Fairplay’. The ED further asserts that extensive hawala operations are used to divert betting proceeds to offshore accounts.
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