Mumbai, Oct 19 (IANS) The Enforcement Directorate (ED) has conducted searches at 29 premises across six cities in Maharashtra and Gujarat as part of a money-laundering probe into an alleged WhatsApp-driven “pump-and-dump” scheme involving the shares of two listed companies, an official statement said on Monday.
The ED’s Mumbai Zonal Office-I carried out the searches on Friday at premises in Mumbai, Nashik (Maharashtra), Ahmedabad, Gandhinagar, Surat, and Bhavnagar (Gujarat) under the Prevention of Money Laundering Act (PMLA).
The investigation relates to alleged manipulation in the 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 persons who had been allotted shares at low prices, offices of stockbroking and finance firms, and premises linked to individuals suspected of operating promotional WhatsApp groups.
According to 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 money used for these allotments came from a small group of connected persons, firms, and lenders.
The agency alleged that the 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 persons in Haryana and Mumbai, while their operations were allegedly run from Bhavnagar.
The agency claimed the promotional campaign led to a sharp increase 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 family-linked beneficiaries, including entities associated with Affluence Gems, Kawa HUF, and Komalay Consultancy. These beneficiaries had allegedly acquired shares at low prices through preferential warrants.
According to the agency, the shares were subsequently promoted through WhatsApp, X, SMS and other channels to generate buying interest.
The ED said it has frozen trading accounts worth about Rs 200 crore belonging to the persons 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.
–IANS
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