Hari Shankar Tibrewala is a Dubai-based businessman identified by the Enforcement Directorate (ED) as a “huge hawala operator” and the alleged mastermind behind one of India’s most complex small-cap stock manipulation and illegal betting frauds. His name has come under renewed scrutiny amid ED’s widening crackdown, including links to the infamous Mahadev betting app. Here’s a detailed look at his background, operations, and legal trouble.
1. Background and Base of Operations
Operating from Dubai, Tibrewala has leveraged the city’s lenient regulatory environment to build a shadowy financial empire. While officially abroad, he is believed to have deep Indian connections, especially in the stock market and online betting domains. Described as a figure with “immense capital,” Tibrewala channeled his funds through layers of shell companies and associates to mask their origins.
2. Key Illegal Activities and Allegations
a. Stock Market Manipulation
Through foreign portfolio investment (FPI) routes and preferential allotments, Tibrewala allegedly invested illegal betting proceeds in Indian small-cap stocks. As per ED, he inflated stock prices by creating artificial demand and later exited at high valuations, dumping the burden on unsuspecting retail investors.
One notable example includes Gensol Engineering, where Tibrewala acquired a 1.37% stake through preferential allotment. The ED later seized these shares valued at Rs 38.4 crore. Over two dozen small-cap stocks are believed to have been similarly manipulated, several of which have seen steep declines in recent months.
b. Betting Operations via Mahadev App and Skyexchange
Tibrewala is also linked to the illegal Mahadev Online Book, operated out of Dubai, and ran a parallel betting platform called Skyexchange. These websites allowed users to bet on card games, sports like cricket and football, and casino-like games. Proceeds from these platforms were routed through a hawala network into Indian financial markets, according to ED.
He allegedly appointed proxies as directors in Indian companies to conduct layered transactions, shielding the true source of funds and evading detection.
3. Enforcement Directorate Action
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Asset Seizure: In March 2024, the ED froze shares worth Rs 581 crore linked to entities beneficially owned by Tibrewala.
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Raids & Investigations: Raids across his network exposed links between illegal betting and stock market operations.
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Share Confiscation: By February 2025, Tibrewala’s shares in 14 public companies were seized.
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Arrest of Associates: Kolkata-based Suraj Chokhani, believed to be his Indian counterpart, was arrested, exposing a wider network of market operators and shell firms.
4. Fallout on Indian Stock Market
Tibrewala’s actions triggered massive selloffs in the small-cap segment. Companies linked to his investments saw sharp price declines as high-net-worth individuals (HNIs) became wary of participating in preferential allotments. Analysts liken his impact to infamous scamsters like Harshad Mehta, particularly due to the scale of manipulation and systemic damage caused.
5. Fresh Twist on April 16
On April 16, the ED conducted a fresh round of raids in connection with the Mahadev betting app case, targeting 15 locations across India including Delhi, Mumbai, Jaipur, and Chennai.
Although there is no official confirmation linking these companies to Tibrewala in the current ED action, investor speculation is rife. A user on X (formerly Twitter), @StocksResearch, alleged that the sharp decline in JTL, Balu Forge, and Servotech may be tied to Hari Shankar Tibrewala’s web of influence in small-cap firms.
Disclaimer: This is a source-based article relying on publicly available information and social media commentary. Business Upturn does not confirm or endorse the accuracy of all allegations. We take no liability for the claims made by third parties or the course of ongoing investigations.
