ED Searches Linked to Share Manipulation and WhatsApp Investment Groups
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Directorate of Enforcement conducted search operations on October 16, 2026, at 29 premises across six cities, including Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat, and Bhavnagar. The searches were conducted under the Prevention of Money Laundering Act, 2002, concerning the manipulation of shares for M/s R M Drip and Sprinklers Systems Ltd and M/s R&B Denims Ltd. The investigation revealed that between April 2023 and March 2024, the two companies issued over 3.5 crore shares and convertible warrants to selected persons. Furthermore, WhatsApp communities operating from Bhavnagar, using SIM cards registered in Haryana, sent daily 'buy' tips to retail investors between December 2025 and February 2026.
From freepressjournal.in
Why it matters
The investigation uncovered a scheme where share prices were steadily pushed up after the companies issued shares and warrants to a small circle of connected persons, firms, and lenders. This manipulation was promoted to gullible retail investors through promotional WhatsApp groups, indicating a large-scale financial fraud operation.
From freepressjournal.in
Who's involved
- HaryanaThe state whose SIM cards were used to run the promotional WhatsApp groups.
- BhavnagarThe city where the promotional WhatsApp groups operated from.
- GujaratThe state where the search operations took place.
- AhmedabadA city in the state of Gujarat where search operations were conducted.
- SuratA city in the state of Gujarat where search operations were conducted.