– ED probe reveals route funds to stock market through dummy companies
– Mahadev illegal betting app case: dummy companies used to route funds to stock market.

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Investigation into Mahadev Online Book illegal betting app reveals bank entries used for stock market investments

The Enforcement Directorate (ED) has made significant progress in the investigation into the multi-crore Mahadev Online Book illegal betting application scam. It has been uncovered that dummy companies were used to invest in the stock market through bank entries. The ED announced on Friday that it had frozen shares worth Rs 1,100 crore held in demat accounts linked to the accused in the case.

Indian connection to fugitive promoters of Mahadev app revealed

Following the arrest of Suraj Chokhani, the Indian connection to the fugitive promoters of the Mahadev app, shocking details have emerged. Chokhani allegedly diverted Rs 423 crore through a betting website called ‘skyexchange’ to stock portfolios using companies under his directorship. The ED suspects that most of these investments were in small and mid-cap stocks.

Concerns over stretched valuations of small and midcap stocks

The ED findings have come at a time when markets regulator Sebi’s chief Madhabi Puri Buch raised concerns over stretched valuations of small and midcap stocks. These stocks are typically favoured by retail investors and have continued to attract investment through monthly purchase mandates to mutual funds focused on such themes.

Main associate of money launderer identified

Chokani has been identified as the main associate of Hari Shankar Tibrewal, who the ED suspects of laundering secret proceeds of crime through share investments. The duo allegedly converted cash received through hawala channels to bank entries with the help of professional entry operators.

Investigation reveals intricate money laundering scheme

The investigation uncovered a sophisticated money laundering scheme where Indian and foreign entities invested in stock portfolios worth millions of rupees. The ED revealed that professional entry operators were used to generate bank balance in accounts through transactions in unlisted stocks.

Legal proceedings and remand decisions

Chokhani and another accused, Girish Talreja, were arrested on March 3 and remanded in ED custody till Monday. Despite the ED’s application for further custody being rejected by the special judge in Raipur, Chokani was remanded to judicial custody until March 23.

Umbrella syndicate facilitating illegal betting websites

The Mahadev betting app is alleged to be an umbrella syndicate that provides online platforms for illegal betting websites to enroll new users, create User IDs, and launder money through benami bank accounts. The ED’s probe into this sophisticated operation continues to unravel more details and connections.

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– Mahadev illegal betting app investigation
– ED probe dummy companies stock market routing funds.