The Enforcement Directorate (ED) has frozen 13 bank accounts that are connected to an illegal betting scam being run from Dubai. According to reports, these accounts have links to a hawala operator named Hari Shankar Tibrewala based in Dubai. Hawala is an informal way used to transfer money internationally without actual money movement.
The ED is investigating a case related to an illegal online betting app called Mahadev Online Book (MOB). This app was working as a syndicate to arrange online platforms and websites for illegal betting. It was also laundering money through many fake bank accounts. The money earned from betting was being invested in stocks listed on Indian stock exchanges like BSE and NSE to hide its source.
The 13 accounts frozen by ED belong to different companies. Some of these companies are Ability Games, Ability Smartech, Ability Ventures etc. Most of these accounts are linked to Tibrewala in some way. Tibrewala has been accused of laundering money from the betting operations through these accounts and investing in stocks.
Five of these frozen accounts belong to foreign companies with Foreign Portfolio Investor or FPI structure. These are Ecotek General Trading from UAE, Zenith Multi Trading and Plus Commodities from Dubai, and Caterfield Commodities and JE Impex also from Dubai. Together these FPI companies held stocks worth over Rs 600 crore as per ED.
Zenith Multi Trading held shares in companies like Balu Forge, Pritika Auto etc. Ecotek held stocks in firms like Toyam Sports, OK Play etc. Caterfield and Sawarnbhumi Vanijya also held some shares. In some cases these FPIs held less than 1% stake in companies.
ED has also arrested one Suraj Chokhani last week. He is a key aide of Tibrewala and helped launder money through share market deals under the guise of investments, says ED. Chokhani is director of a company called Dream Achiever Consultancy which recently acquired a stake in an arbitrage firm.
With this action, ED aims to uncover the entire money laundering network involved in the illegal betting scam and book those guilty. The betting through such apps and sites is illegal in India. Laundering profits from such criminal activities through fake accounts and stock market is also against the law.
In summary, Enforcement Directorate freezes 13 bank accounts linked to a Dubai-based illegal betting syndicate for money laundering through stock market investments.
