ED zeroes in on Dubai-based operator-cum-FPI in MOB case; freezes Rs 581 cr of shares

The ED said that it has identified Tibrewal as one of the major players involved with the promoters of Mahadev Online Book, which is being probed for money laundering.

The Enforcement Directorate (ED) has frozen shares worth Rs 581 crore held by associates of entities beneficially owned by Hari Shankar Tibrewal, a Dubai-based hawala operator with links to the promoters of illegal online betting websiteMahadev Online Book.

Hawala is the colloquial term for illegal transfer of money.

The ED said that it has identified Tibrewal as one of the major players involved with the promoters of Mahadev Online Book, which is being probed for money laundering.

The ED release said that Tibrewal owned and operated one of the illegal betting websites viz. skyexchange, and was involved in large-scale hawala movement of the betting funds.

“He (Tibrewal) through his Dubai-based entities was investing the betting proceeds in Indian Stock market by way of Foreign Portfolio Investment (FPI) route. He had also employed many of his associates as director in various companies which were involved in layering of the betting proceeds by investing them in stock market,” the release said.

Tibrewal had also employed many of his associates as director in various companies which were involved in layering of the betting proceeds by investing them in stock market, the release added.

Zenith Multi Trading DMCC, one of the companies promoted by Tibrewal, owns stakes in companies like Servotech Power Systems, Gensol Engineering, Pritika Auto, Balu Forge, and Star Housing Finance. Barring Star Housing Finance in which Zenith DMCC owns less than 1 percent according to Trendlyne.com, Zenith DMCC is listed as an FPI in the other companies.

Moneycontrol learned from sources that two other prominent stock market players, one based out of Mumbai and the other a Kolkata-based investor in small cap stocks too have been raided by the ED as part of the same investigation.