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According to officials, the frozen shares are part of a larger suspected scheme involving the artificial inflation of stock prices through tainted funds routed via foreign portfolio investors (FPIs).
The Enforcement Directorate (ED) is reportedly preparing to summon Anmol and Puneet Singh Jaggi, promoters of Gensol Engineering, as part of its ongoing probe into the Mahadev Book app illegal betting and money laundering network, reports said.
While formal summons are yet to be issued, the agency has already frozen over 5 lakh shares of Gensol Engineering. These shares were previously held by Zenith Multi Trading DMCC, a Dubai-based entity connected to Hari Shankar Tibrewal, one of the key accused in the Mahadev betting scandal.
According to officials, the frozen shares are part of a larger suspected scheme involving the artificial inflation of stock prices through tainted funds routed via foreign portfolio investors (FPIs). "The probe has revealed stock manipulation using tainted funds in the Mahadev app case, which were received in Gensol Engineering through FPI routes. The probe will ascertain whether the promoters were aware of this fact," a senior government official said.
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The ED has already attached assets worth Rs 573 crore linked to the sprawling illegal betting network. This includes securities and demat account holdings tied to Gensol. As per data from the Bombay Stock Exchange (BSE), the agency's Raipur Zonal Office currently holds 1.37% of the company's equity as of December 2024.
On April 16, the investigation intensified with coordinated raids across several cities, including a search of EaseMyTrip co-founder Nishant Pitti's residence in Delhi. The ED is now zeroing in on the flow of illicit money into the stock market through preferential allotments and transactions orchestrated by those with control over promoter shares, allegedly used to manipulate Gensol's stock price.
The scope of the Mahadev Book app probe has grown rapidly. So far, the agency has raided over 170 locations, seized assets worth more than Rs 3,000 crore, and arrested 13 individuals. A total of 74 entities have been named in five prosecution complaints filed in connection with the case.
The Mahadev app is believed to be at the center of a massive Rs 5,500 crore illegal betting and money laundering syndicate, with proceeds reportedly funneled into cryptocurrencies, overseas real estate, and shell companies. Prime accused Saurabh Chandrakar and Ravi Uppal are said to have obtained citizenship in Vanuatu after fleeing India.
In its May 2024 supplementary chargesheet, the ED laid out how funds were funneled through foreign entities and used in suspicious stock investments.
