The Enforcement Directorate (ED) has arrested Govind Kedia, a prominent stock portfolio broker, in connection with the ongoing investigation into the Mahadev online betting syndicate. Kedia is accused of channeling funds generated from illegal betting operations into the stock market.
Kedia, who owns a stock portfolio management firm, was apprehended in Kolkata and presented before the Special Prevention of Money Laundering Act (PMLA) court in Raipur on Saturday. The ED sought a 14-day custodial remand for further interrogation, but the court granted a 5-day remand, enabling the agency to continue its probe.
The ED probe has allegedly revealed that Kedia was a close associate of Vikas Chhaparia, one of the promoters of the Mahadev betting app and an accused in the case. Chhaparia, responsible for handling hawala operations for the betting syndicate, allegedly collaborated with Kedia, Chhaparia funneled substantial proceeds from the illegal betting operations into the Indian stock market.
Kedia is accused of facilitating these funds strategically invested through entities such as Perfect Plan Investments LLP, Exim General Trading FZCO, and Techpro IT Solutions LLC, allegedly leveraging the Foreign Portfolio Investment (FPI) route to conceal the illicit origins of the money.As part of the investigation, the ED had previously frozen cash derivatives and security holdings worth Rs 236.3 crore, which were registered under entities beneficially owned by Chhaparia.
Further investigations uncovered Kedia's alleged involvement in managing the shell company M/S Laxis Residency LLP, connected to Chhaparia's partnership firm and another accused, Nitin Tibrewal. Kedia is accused of allegedly investing significant amounts of illicit funds into the stock market under Chhaparia’s direction. Profits and losses from these investments were reportedly shared in a 75:25 ratio, with Kedia charging interest only on 25% of the total investment.
The ED has also frozen assets worth Rs 160 crore in demat holdings under Kedia’s name under PMLA 2002. During searches at Kedia's premises last year, the agency seized Rs18 lakh in Indian currency, along with gold and jewelry valued at Rs 13 crore.
The investigation further links Kedia to Nitin Tibrewal, the majority shareholder of Techpro IT Solutions Ltd. Tibrewal is accused of using the company as a front for the Mahadev Online Book syndicate. The ED claims Tibrewal channeled the proceeds of crime from illegal betting operations into the stock market via Foreign Portfolio Investments, effectively laundering crores of black money into legitimate wealth through share trading.
Kedia’s role in assisting Tibrewal with layering the proceeds of crime is significant. According to the ED, Kedia used various aliases to route funds through both Indian and foreign entities. "Foreign accounts and financial transactions were intentionally camouflaged to obscure the illicit origins of the funds," a senior ED official revealed. This collaboration enabled the syndicate to convert proceeds from illegal betting into seemingly legitimate wealth, all while maintaining the appearance of lawful financial activity.
The investigation continues, and the ED is expected to further probe the connections between Kedia, Chhaparia, and Tibrewal in its ongoing efforts to dismantle the Mahadev betting syndicate’s complex financial network.
