Hari Shankar Tibrewala owned shares in these 14 companies. Now govt owns them.

Hari Shankar Tibrewala owned shares in these 14 companies. Now govt owns them.


According to a Mint review of the shareholding pattern of these companies, the ownership transfer from Tibrewala-owned entities to the Enforcement Directorate, Raipur, occurred in the last week of November.

These 14 small-cap companies, with a market cap of 21,880 crore, counted Tibrewala-owned Zenith Multi Trading DMCC, Ecotek General Trading LLC and Caterfield Global DMCC, as shareholders at the end of September. According to a review by Mint, all of these shares, valued at 590 crore at the end of 1 February, are now owned by ED.

Zenith, Ecotek and Caterfield Global are Dubai-registered companies. Tibrewala set up Zenith in June 2013, followed five years later by Ecotek in 2018 and Caterfield in 2020, according to registration filings with the Dubai Multi Commodities Centre, the UAE’s free trade zone. Zenith and Ecotek list the same telephone number, as Mint reported in its edition dated 28 March, 2024.

Also read | Mint Explainer: Mahadev app and the alleged money laundering scandal

Many entities owned by Tibrewala’s associates continue to own shares in listed firms. According to a Mint review of many small-cap stocks, ED’s decision to confiscate shares is limited to Tibrewala. Suraj Chokhani, another Kolkata resident who the ED arrested in March as it referred to him as Tibrewala’s Indian counterpart, owns shares in many listed companies through privately held firms. Dream Achiever Consultancy Services Pvt. Ltd, Brilliant Investment Consultants Pvt. Ltd and Forest Vincom Pvt. Ltd are three privately-owned companies of Chokhani, and they continue to own shares of small-cap companies such as BLB Ltd, LKP Finance Ltd, Gogia Capital Growth Ltd and North Eastern Carrying Corp Ltd.

ED began investigating suspected stock market manipulation after it found that Tibrewala was an accomplice of the promoters of the illegal Mahadev Online betting app. In a press release on 1 March, 2024, ED said that Tibrewala is a “huge hawala operator” and that, through his Dubai-based entities, he was investing the betting proceeds in the Indian stock market through the foreign portfolio investment (FPI) route.

A week later, on 8 March, ED said that it had found Tibrewala was “also involved in the manipulation of the stock market in collusion with the promoters of the listed companies.”“Hari Shankar Tibrewal, using his immense capital, used to create temporary fluctuations in share prices, driving them upwards, and then withdraw funds once the prices reached a desirable level,” ED said.

Soon after, Madhabi Puri Buch, chair of the Securities and Exchange Board of India, the country’s market regulator, publicly expressed concern about the surging valuation of small-cap stocks. “There are pockets of froth in the market. Some people call it a bubble, some may call it froth,” Buch said at an event.

An email to Tibrewala seeking comment went unanswered, and an email to the Enforcement Directorate’s Raipur office remained unanswered.

In response to a query, a spokesperson for Gensol said, “Share transfer of 1.37% representing 5,20,063 equity shares of our company held by Zenith Multi Trading DMCC to the Enforcement Directorate Raipur occurred in the last week of November 2024.”

In a press release on 1 March, 2024, ED said that Tibrewala is a “huge hawala operator” and that, through his Dubai-based entities, he was investing the betting proceeds in the Indian stock market through the FPI route.

At the end of 1 February, Gensol’s market cap totaled 2,798 crore. The Government of India now owns 1.37% in the company, valued at about 38.4 crore.The Ahmedabad-based company, which installs ground-mounted and rooftop solar panels was founded by Anmol Singh Jaggi, who also runs Blusmart, an electric vehicle ride-hailing business. Tibrewala became an investor in Gensol in September 2022, when the company raised money through a preferential allotment of shares to investors.

“We don’t have any communications, details or documents received from any of the competent authorities for the said transfer happened,” said a spokesperson. Gensol added that ED is probing none of its employees.

Also read | The curious case of UAE-based funds in India’s small-cap bubble

Balu Forge, a Mumbai-headquartered company that makes forged components and crankshafts for automobiles and railways, said that it received information from the Registrar and Transfer Agent about the change in ownership of the public shareholding pattern in the December quarter. “The company confirms that no one from the management or executives is under investigation. Since the mentioned funds bought the stock from the open market, the company has/had no involvement in the same,” said a spokesperson for Balu Forge.

OK Play India, which makes plastic moulded toys, said it does not exercise control over or have access to its shareholders’ business dealings or private transactions. A spokesperson for Ok Play India said, “Neither the company nor its management is under investigation by any such agency.”

BCL Industries, which makes edible oil and liquor, said it also learned about the change in ownership of public shares in the last week of November. The company said ED is probing none of its employees.

Anjan Chatterjee, the founder of Speciality Restaurants Ltd clarified that he got to know about the change in share ownership in the “week ending 1st December”. Chatterjee said ED is probing none of its employees.

Queries emailed to the other nine companies remained unanswered.

And read | The mysterious UBOs surfing in India’s small-cap froth



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