ED Conducts Raids in Six Cities, Uncovers Share Scam Involving 29 Locations
The ED has launched significant operations in Mumbai and five other cities, targeting a share manipulation scheme linked to two companies.
Mumbai, October 16 (Daily Kiran) : The Enforcement Directorate (ED) has undertaken a major operation targeting a share manipulation scandal linked to two companies, RM Drip and Sprinklers Systems Limited and R&B Denims Limited. On Thursday, the ED’s Mumbai zonal office executed searches at 29 locations across Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat, and Bhavnagar under the Prevention of Money Laundering Act, 2002.
The investigation revealed that between April 2023 and March 2024, the two companies issued over ₹3.5 crore worth of shares and convertible warrants to select individuals. The funds for these shares primarily came from a network of associated individuals, firms, and moneylenders. Subsequently, the share prices were artificially inflated over several months while remaining in the hands of a limited group.
From late December 2025 to February 2026, tips on purchasing these shares were disseminated daily through WhatsApp groups named “Multibagger Stock.” Although the groups were registered under numbers from Haryana and Mumbai, the operations were managed from Bhavnagar, Gujarat.
As a result of these tips, the number of buyers surged from approximately 3,400 to over 100,000. However, on February 25, 2026, the WhatsApp groups were suddenly deleted, causing both stocks to hit lower circuit limits and plummet nearly 70% in just a few days. This abrupt decline left over 100,000 small investors facing significant losses, unable to sell their shares.
During the ED’s searches, numerous incriminating documents, digital devices, transaction records, and property papers were seized.
