The Enforcement Directorate revealed that dummy accounts were used to invest as much as ₹1100 crore in the stock market.
The Enforcement Directorate (ED) during its investigation into the Mahadev Online Book app case revealed that multiple dummy accounts and false bank entries were used to invest ₹ 1,100 crore in the Indian stock market. After this new revelation, ED has decided to freeze these shares till the investigation concludes.
Last week, the ED said that it had frozen stock market shares of around ₹ 1,100 crore held in the demat accounts linked to the prime accused in the Mahadev app scam case, reported The Economic Times.
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Through the ED investigation, it was revealed that one of the accused in the case, Suraj Chokhani, diverted funds worth ₹ 432 crore through a betting website called skyexchange into the stock market. This was done shortly after his arrest. ED suspects most of these were small and mid-cap stocks, reported ET.
During the probe, Chokhani was identified as one of the main associate of Hari Shankar Tibrewal, who is suspected to have laundered secret proceeds from the app under the guise of stock investments. The duo has been accused of converting cash received from the hawala channel into fake bank entries, eventually investing the money in the stock market.
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“. 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 the 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 statement on Friday.
Earlier, ED in its court filings had sought Chokhani’s remand, stating,“The investigation has revealed that for this purpose of obtaining bank balance in bank accounts, transactions in the name of unlisted stocks were undertaken by professional entry operators.”
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It was revealed during the probe that Chokhani used eight private companies to purchase these shares. He was also the director of these eight firms.
The ED investigation revealed that Mahadev Online Book provides online platforms for illegal betting in different live games like Poker, Card games, Chance games, betting on cricket, badminton, tennis, football etc, and also provide facility for playing a number of card games like TEEN PATTI, Poker, Dragon Tiger, and more.
