The Enforcement Directorate (ED) has uncovered a significant financial scandal in the Mahadev betting app case, revealing the use of dummy accounts and fake bank entities to funnel approximately ₹1,100 crore into the stock market. As part of its ongoing investigation, the ED has frozen stock market portfolios linked to the prime accused, Hari Shankar Tibrewal, until further notice.
On March 8, the ED announced that it had frozen stock market portfolios valued at over ₹1,100 crore in demat accounts associated with Hari Shankar Tibrewal, the main accused in the scam. The ED disclosed that Indian companies controlled by Tibrewal’s associates held securities worth ₹580 crore in stock portfolios, while foreign entities invested an additional ₹606 crore in India through the FPI route.
According to the ED, Tibrewal allegedly colluded with promoters of listed companies to manipulate stock prices for personal gain. Using substantial capital, Tibrewal orchestrated temporary fluctuations in share prices, artificially driving them upward before withdrawing funds once prices reached favorable levels.
The ED has also arrested Girish Talreja and Suraj Chokhani in connection with the Mahadev betting app scam. Chokhani reportedly disclosed that a significant portion of the investment funds was sourced through cash-based bank entries, with the proceeds subsequently channeled into the stock market. It is alleged that Chokhani diverted funds amounting to ₹432 crore through the betting website ‘skyexchange’ shortly after his arrest, with most of these funds believed to have been invested in small and mid-cap stocks.
The ED’s investigation into the Mahadev online gaming and betting app has revealed potential involvement of high-ranking politicians and bureaucrats from Chhattisgarh. The agency suspects that illegal funds generated by the Mahadev app were used to pay bribes to politicians and bureaucrats in Chhattisgarh, where the main promoters and operatives of the app are based.
Thus far, the ED has seized or frozen movable properties worth ₹1764.5 crore in connection with the Mahadev betting app scam. A total of 11 individuals have been apprehended in connection with the case, indicating the widespread nature of the financial irregularities uncovered by the investigative authorities.
The revelations made by the ED underscore the need for robust regulatory oversight and enforcement mechanisms to combat financial fraud and market manipulation. The agency’s actions in freezing assets and apprehending suspects demonstrate its commitment to upholding the integrity of India’s financial markets and prosecuting those engaged in illegal activities. As the investigation progresses, further developments are expected, shedding light on the full extent of the financial wrongdoing associated with the Mahadev betting app scam.
