India’s financial crime watchdog, the Enforcement Directorate (ED), has confiscated a stake in Gensol Engineering Ltd (GEL) linked to Hari Shankar Tibrewal, a key figure under investigation in the Mahadev Betting App money laundering case.
According to the latest shareholding data filed with the Bombay Stock Exchange, ED's Raipur Zonal Office holds 520,063 shares, or 1.37 percent of GEL’s equity, as of the quarter ended December 2024. The shares, classified under the “government holding” category, were earlier held by Dubai-based Zenith Multi Trading DMCC—an entity associated with Tibrewal.
The stake was confiscated pursuant to an order dated February 28, 2024, in which ED Raipur directed the freezing of securities held by Zenith and 12 other demat accounts. The agency also flagged the email ID of Tibrewal in the freeze notice.
The action followed search and seizure operations conducted at the premises of Ability Games Pvt Ltd in Kolkata under the Prevention of Money Laundering Act (PMLA). The ED order stated that “FPI investment/balance/equity shares/Securities/F&O/demat accounts lying with the PAN mentioned above… shall not be transferred or otherwise dealt with except with prior permission of the office of Joint Director, Enforcement Directorate, Raipur.”
Subsequent press releases by ED on March 1 and March 8, 2024, confirmed that the money laundering probe is part of the broader Mahadev Betting App investigation. The agency alleged that Tibrewal laundered proceeds of crime through multiple companies operating in India and abroad, using intermediaries including Suraj Chokhani.
The March 1 release noted: “As on 29.02.2024, the Indian companies under control of associates of Hari Shankar Tibrewal held around securities worth Rs. 580 crore in stock portfolios. The foreign entities also invested in India via FPI route and as on 29.02.2024 they were found to be holding securities worth Rs 606 crore in stock portfolios.”
ED further alleged that the “majority of source for these investments has been collected by way of receiving bank entries against cash” in associated companies, and that the proceeds were subsequently used for share market investments. The laundering trail allegedly includes funneling funds under the guise of share investments in Indian listed companies.
In response to media reports, Gensol issued a press release on March 13, 2024 stating: “Gensol wishes to address the recent media articles which have carried Gensol’s name in connection with Zenith Multi Trading DMCC (“Zenith”). The Investor Release issued by Gensol clarifies that Zenith, a passive shareholder since September 2022, holds less than 1.5% in Gensol and holds neither decision-making rights nor any involvement in the business and operational strategies of the company.”
Market sources suggest that the ED’s scrutiny may not stop at Gensol. “The stake in Gensol appears to be only one part of a wider probe into investments allegedly made with laundered funds linked to the Mahadev App network,” one person aware of the matter said. “Other listed companies where such entities hold positions could also come under ED’s scanner.”
Moneycontrol wrote to the Enforcement Directorate seeking comment on the confiscated stake in Gensol Engineering but did not receive a response.
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