Mumbai, October 19, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has conducted searches at 29 premises across six cities in Maharashtra and Gujarat as part of a money-laundering investigation into an alleged WhatsApp-driven “pump-and-dump” scheme involving shares of two listed companies, according to an official statement issued on Monday.
The ED’s Mumbai Zonal Office-I carried out the searches on Friday at locations in Mumbai and Nashik in Maharashtra, and Ahmedabad, Gandhinagar, Surat and Bhavnagar in Gujarat, under the Prevention of Money Laundering Act (PMLA).
The investigation concerns alleged manipulation of shares of R M Drip and Sprinklers Systems Ltd (RMDSSL) and R&B Denims Ltd.
The premises searched included the offices of the two companies, residences of their promoters and individuals who had been allotted shares at low prices, offices of stockbroking and finance firms, and locations linked to people suspected of operating promotional WhatsApp groups.
According to the ED, its investigation found that between April 2023 and March 2024, the two companies issued more than 3.5 crore shares and convertible warrants to selected individuals and entities. A substantial portion of the funds used for these allotments allegedly came from a small group of connected individuals, firms and lenders.
The agency alleged that share prices were subsequently pushed up while a large proportion of the shares remained with the same set of holders.
From late December 2025 to February 2026, WhatsApp communities with names such as “Multibagger Stocks” allegedly circulated daily “buy” recommendations for the shares among retail investors.
The ED said the groups operated using SIM cards obtained in the names of other people in Haryana and Mumbai, while their operations were allegedly managed from Bhavnagar.
According to the agency, the promotional campaign led to a sharp rise in buyers, trading volumes and share prices. Preferential allottees allegedly took advantage of the increased buying interest to sell part of their holdings to a large number of investors.
During the searches, the ED said it identified clusters of beneficiaries linked through family connections, including entities associated with Affluence Gems, Kawa HUF and Komalay Consultancy. These beneficiaries had allegedly acquired shares at low prices through preferential warrants.
The agency alleged that the shares were subsequently promoted through WhatsApp, X, SMS and other channels to generate buying interest.
The ED said it had frozen trading accounts worth around Rs 200 crore belonging to the individuals and connected entities under investigation.
The agency also seized documents, digital devices, share transaction records and property-related papers during the searches.
Further investigation is underway.
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