Mumbai, October 16, 2026 (Yes Punjab News)
The Directorate of Enforcement (ED) on Friday conducted searches at 29 offices and residential premises across six cities in connection with an alleged investment fraud involving the manipulation of share prices of two listed companies. Digital devices, documents and financial records were seized during the operation, according to an official statement.
The ED’s Mumbai Zonal Office-I carried out the searches under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The locations covered included Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat and Bhavnagar.
The case relates to alleged manipulation of shares in R M Drip and Sprinklers Systems and R&B Denims Ltd, the agency said.
The premises searched included the offices of the two companies, residences of their promoters, locations linked to persons who were allotted shares at low prices, offices of stockbroking and finance firms, and premises of individuals suspected of operating WhatsApp groups used to promote the shares.
During the searches, officials seized what the agency described as incriminating documents, digital devices, share transaction records and property-related documents.
According to the ED’s investigation, the two companies issued more than 3.5 crore shares and convertible warrants to selected individuals and entities between April 2023 and March 2024.
A substantial portion of the money used to purchase these shares allegedly came from a limited network of connected individuals, firms and lenders. In the months that followed, the share prices were gradually pushed upwards, while ownership of the shares largely remained concentrated among the same holders, the agency said.
The investigation further revealed that between late December 2025 and February 2026, WhatsApp communities operating under names such as “Multibagger Stocks” circulated daily buy recommendations for the two shares, allegedly targeting retail investors.
According to the ED, the groups were operated using SIM cards registered in the names of other individuals in Haryana and Mumbai, while the operations were allegedly managed from Bhavnagar in Gujarat.
Following the circulation of these recommendations, the number of buyers in the two stocks reportedly increased from around 3,400 to more than one lakh.
The agency said the WhatsApp groups were abruptly deleted on February 25, 2026. Subsequently, both shares hit their lower circuit limits and lost around 70 per cent of their value within days.
The sharp decline allegedly left more than one lakh small investors facing substantial losses, with some unable to sell their holdings.
The searches form part of the ED’s investigation into the alleged share-price manipulation and the suspected flow of funds linked to the transactions.
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