ED Freezes ₹200 Crore in Accounts Amid Share Manipulation Probe
The Enforcement Directorate has conducted extensive raids across six cities, freezing accounts linked to alleged stock manipulation schemes.
ED froze accounts worth ₹200 crore during a money laundering investigation.
Raids were conducted in Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat, and Bhavnagar.
The investigation targets suspected manipulation of shares in R M Drip and R&B Denims.
The Enforcement Directorate (ED) has taken significant action in a money laundering investigation by freezing trading accounts valued at approximately ₹200 crore. This move follows a series of searches conducted across 29 locations in six cities, including Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat, and Bhavnagar, on October 16. The investigation focuses on the alleged manipulation of shares associated with R M Drip and Sprinklers Systems Ltd and R&B Denims Ltd, as detailed in a press release from the agency.
The ED's operations were initiated under the Prevention of Money Laundering Act (PMLA) and targeted various premises, including company offices, residences of promoters, and individuals suspected of being involved in promotional activities via WhatsApp groups. The agency's findings suggest that these companies allocated over 3.5 crore shares and convertible warrants to select individuals between April 2023 and March 2024, with funding allegedly sourced from a small network of connected entities.
Evidence gathered by the ED indicates that the shares were artificially inflated in price while remaining concentrated among a limited group of holders. Between late December 2025 and February 2026, WhatsApp groups, such as 'Multibagger Stocks', reportedly disseminated daily buy recommendations to retail investors. These groups operated using SIM cards registered in Haryana and Mumbai, but were allegedly managed from Bhavnagar, according to the ED.
The investigation has identified several entities and family-linked groups, including Affluence Gems and Komalay Consultancy, which are accused of acquiring shares at preferential rates. During the raids, the ED seized various documents, digital devices, and transaction records. The number of investors in the targeted stocks reportedly surged from around 3,400 to over 100,000 in a short timeframe, raising concerns about the integrity of the market.
As the investigation continues, the ED is expected to delve deeper into the operations of these companies and their connections. The Securities and Exchange Board of India (SEBI) had previously conducted its own searches related to these companies, focusing on allegations of artificially inflating stock prices to attract retail investors before selling at inflated rates. SEBI's inquiry remains ongoing, with further developments anticipated in the coming weeks.
