Overview
- The Enforcement Directorate carried out searches at 29 premises across Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat and Bhavnagar as part of a money‑laundering probe into suspected market manipulation of R M Drip and Sprinklers Systems Ltd and R&B Denims Ltd.
- Investigators say more than 3.5 crore shares and convertible warrants were issued to selected persons between April 2023 and March 2024 with much of the money coming from a small circle of connected individuals, firms and lenders.
- The agency alleges operators used WhatsApp groups such as 'Multibagger Stocks' plus X and SMS to circulate daily buy tips that boosted trading volumes and prices so preferential allottees could sell into retail demand.
- During the searches the ED seized digital devices, transaction and property records, identified family‑linked beneficiary clusters tied to entities such as Affluence Gems, Kawa HUF and Komalay Consultancy, and froze trading accounts worth about ₹200 crore.
- The probe is continuing under the Prevention of Money Laundering Act as the ED widens its financial trail tracing to find additional facilitators and determine how many retail investors were exposed to losses.