Enforcement Directorate Probes Gensol Engineering Over Mahadev Betting App Links

The Enforcement Directorate (ED) is set to question Gensol Engineering promoters, Anmol and Puneet Singh Jaggi, in connection with the Mahadev Book app illegal betting and money laundering case. Sources reveal that while formal summons are yet to be issued, the ED has frozen over 500,000 shares of Gensol Engineering, previously held by Dubai-based Zenith Multi Trading DMCC, linked to accused Hari Shankar Tibrewal.

Investigators suspect these shares were part of a scheme involving artificial stock price manipulation using tainted funds routed through foreign portfolio investors (FPIs). A senior government official stated, "The probe has revealed stock manipulation using tainted funds in the Mahadev app case, which were received in Gensol Engineering through the FPI routes."

Expanded Investigation and Asset Seizures

The ED recently attached assets worth Rs 573 crore related to the illegal betting network, including securities and demat holdings linked to Gensol. BSE data shows that as of December 2024, the ED’s Raipur Zonal Office holds 1.37 percent of Gensol’s equity.

On April 16, the ED conducted coordinated searches across multiple cities, including the residence of EaseMyTrip founder Nishant Pitti in New Delhi. The agency is focused on uncovering how illicit funds were funneled into the market via preferential share allotments and promoter-controlled stock sales to manipulate Gensol’s share price.

Background: The Mahadev Book App Syndicate

The Mahadev Book app is allegedly at the center of a massive illegal betting and money laundering network. The syndicate is believed to have laundered over Rs 5,500 crore, investing the proceeds in cryptocurrencies, shell companies, and overseas real estate. Key accused Saurabh Chandrakar and Ravi Uppal have reportedly fled India and acquired Vanuatu citizenship.

Sebi Scrutiny of Gensol Engineering

Parallel to the ED probe, Gensol Engineering is under investigation by Sebi for alleged financial misconduct, misleading public disclosures, and fund diversion. An interim order by Sebi earlier this month alleged no real manufacturing activity at Gensol’s EV facility in Pune, despite claims of securing 30,000 pre-orders. The EV pre-orders were found to be non-binding memorandums of understanding, lacking pricing details or delivery timelines.

Sebi has barred the Jaggi brothers from holding market or executive positions, leading to operational halts at affiliate BluSmart, which suspended its electric cab services following the revelations.