Mahadev Betting App Funds Linked to Stock Price Manipulation and Market Layering: ED
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Synopsis
The ED has revealed that illicit funds from the Mahadev Online Book Betting APP were used to manipulate SME stock prices, deceiving investors. The investigation, following extensive raids, uncovered serious financial irregularities and implicated company promoters in laundering operations.
Key Takeaways
- Illicit funds from betting app manipulated stock prices.
- Investigations led to multiple raids across major cities.
- Promoters involved in laundering operations.
- Substantial seizures and arrests made.
- ED continues to unravel the financial scandal.
Raipur, April 22 (NationPress) The Directorate of Enforcement (ED) has disclosed that the funds generated from the illicit betting platform Mahadev Online Book Betting APP were intentionally utilized to manipulate the stock prices of securities in the small and medium enterprise (SME) sector, ultimately misleading ordinary investors.
This startling information emerged from the raids conducted on April 16 and the subsequent investigation, which was carried out by the agency’s Raipur division at multiple locations including Delhi, Mumbai, Indore, Ahmedabad, Chandigarh, Chennai, and Sambalpur (Odisha) under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation revealed that the funds were transferred outside India and subsequently reintroduced into the Indian stock market under the guise of foreign FPIs originating from Mauritius, Dubai, and various other locations, according to the ED.
Investigators have discovered extensive financial irregularities.
Alarmingly, evidence indicates that the promoters of certain listed companies directly participated in the laundering of these illicit funds.
By misusing preferential shares, promoter-held stock sales, and share warrants, these promoters allegedly collaborated with middlemen and agents to artificially boost their company valuations using tainted money, stated the money laundering investigation agency.
Further investigations have shown that some listed companies were exploited for layering stock market investments, complicating the fraud scheme, as per the agency.
As investigations continue, authorities are determined to uncover the full scale of this massive financial scandal.
The agency is pursuing the case further. The search operations led to significant seizures, including Rs 3.29 crore in cash and the freezing of securities, bonds, and DEMAT accounts valued at over Rs 573 crore.
Moreover, incriminating documents and electronic records have been retrieved, further revealing the intricate web of financial fraud.
To date, the ED has conducted searches at over 170 locations, resulting in the seizure, freezing, and attachment of immovable and movable assets valued at approximately Rs 3,002.47 crore. This operation also led to the arrest of 13 individuals, with 74 entities officially named as accused in five prosecution complaints tied to the case.
