Financial crime watchdog the Enforcement Directorate (ED) has confiscated a stake in Gensol Engineering Ltd (GEL) linked to Hari Shankar Tibrewal. He was under investigation in connection to the Mahadev Betting App money laundering case, according to Money Control.
The latest shareholding data filed with the Bombay Stock Exchange established that ED’s Raipur Zonal Office holds 520,063 shares, or 1.37 percent of GEL’s equity. Dubai-based Zenith Multi Trading DMCC – an entity associated with Tibrewal – previously held these shares classified under the “government holding” category.
The ED ultimately seized the stake following an order dated February 28, 2024, ordered the securities held by Zenith and 12 other demat accounts be frozen. Tibrewal’s email ID also earned an infamous nod in the freeze notice. Thereafter, search operations under the Prevention Money Laundering Act (PMLA) followed at Ability Games Pvt Ltd in Kolkata.
“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,” the ED order stated
ED then issued press releases on March 1 and March 8, accusing Hari Shankar Tibrewal of laundering criminal proceeds through companies in India and overseas. Suraj Chokhani’s name was also dragged as an intermediary.
On March 1, ED revealed, “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.”
Further explanations from market sources noted, “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. Other listed companies where such entities hold positions could also come under ED’s scanner.”