Mumbai: Enforcement Directorate (ED) has identified and frozen the stock portfolios of a man known as Junior Kolkata, an allegedly key figure in the Mahadev betting app case. Junior Kolkata is alleged to have invested in the stock market through the Foreign Portfolio Investor (FPI) route, amassing securities valued at over Rs 15 crore in stock portfolios through his Dubai-based commodity trading company, EJ DMC.
The ED's findings, outlined in a reference letter to the EOW Raipur, reveal Junior Kolkata's allegedly deep involvement in illegal betting operations, particularly his partnership with one Hari Shankar Tibrewal in the betting platform Sky Exchange. Tibrewal, a close associate of the Mahadev betting app promoter Saurabh Chandrakar.
Junior Kolkata's name was revealed when arrested accused Nitish Diwan allegedly divulged crucial information about the "Sky Exchange" betting app and its promoter, Hari Shankar Tibrewal, indicating Tibrewal's alleged association with Saurabh Chandrakar, the promoter of Mahadev Online Book.
Diwan's statement spurred the Enforcement Directorate (ED) to conduct thorough searches in Kolkata in February, targeting business entities connected to Tibrewal, including Suraj Chokhani and other associates. These searches uncovered a trove of incriminating documents, including an Excel sheet detailing how betting funds were funnelled into bank entries with the aid of professional entry operators.
This process involved using unlisted equity transactions to generate bank balances, here the agency found the details about Junior Kolkata link to the syndicate.
Delving deeper into the investigation, the ED unearthed a network of 13 Indian shell companies allegedly under Tibrewal's control. These companies held securities worth Rs. 580 crore in stock portfolios and had made investments in India through the Foreign Portfolio Investor (FPI) route, amassing securities to the tune of Rs 606 crore in stock portfolios.
Among these entities, EJ DMC, a Dubai-based company routed through the FPI, was found to be linked to Junior Kolkata, holding securities worth more than Rs. 15 crore in stock portfolios.
Further investigation revealed that Tibrewal was involved in manipulating the stock market in collusion with these listed companies.Using his substantial capital, Tibrewal created temporary fluctuations in share prices, driving them upwards, and then withdrawing funds once the prices reached a desirable level. Junior took the benefit as a partner and earned a huge amount from the stock market.
The ED has identified and frozen the stock portfolios of Junior Kolkata, amounting to over Rs 15 crore, along with 12 other identified shell companies.
Additionally, ED sources indicated that Junior Kolkata was a partner with Tibrewal in a well-known hospitality company and had invested significantly in an under-construction 5-star hotel at Al Marjan Island,in Dubai along with investments exceeding Rs50 crore in a casino.
The ED's actions against Junior Kolkata and the revelations regarding his involvement in illegal betting operations mark a significant development in the ongoing investigation into the Mahadev betting app case, shedding light on the intricate web of financial transactions.
