ED Raids 29 Locations Across Six Cities in Market Manipulation Probe The Enforcement Directorate conducted simultaneous raids across six cities in Maharashtra and Gujarat in connection with a stock manipulation and money laundering case. Federal financial investigators have launched a massive nationwide crackdown in connection with alleged stock market manipulation and money laundering. The Enforcement Directorate, specifically its Mumbai Zonal Office-1, executed the operations under the provisions of the Prevention of Money Laundering Act 2002. The investigation centers around the suspicious share price movements of two listed companies, RM Drip and Sprinklers Systems Ltd and R&B Denims Ltd. Teams of investigators carried out coordinated searches simultaneously across six different cities spanning two states. Simultaneous Raids Across Six Key Cities The financial investigation agency targeted multiple locations spread across the states of Maharashtra and Gujarat. In Maharashtra, the searches covered several premises located within Mumbai and Nashik. Simultaneously, key commercial and urban centers in Gujarat were brought under the scanner, with extensive searches conducted across Ahmedabad, Surat, Gandhinagar, and Bhavnagar. During these sweeping operations, investigators gathered crucial financial documents and digital evidence concerning the day-to-day operations of both corporate entities. The Mechanism Behind Artificial Price Inflation Investigators discovered that between April 2023 and March 2024, both companies orchestrated a calculated scheme to issue massive quantities of shares and convertible warrants. Over this period, more than 3.5 crore shares and warrants were allotted to a select group of favored individuals and corporate entities. Crucially, the funds used to pay for these shares originated from a tight-knit circle of interconnected persons and associated firms. In the subsequent months, the market prices of both stocks were artificially driven upward while the vast majority of those shares remained concentrated in the hands of the original select beneficiaries rather than flowing into the public domain. Luring Retail Investors Through WhatsApp Groups The probe further revealed that between late December 2025 and February 2026, a network of community groups under the guise of multi-bagger stocks was systematically created. These WhatsApp channels were heavily utilized to broadcast daily trading tips and recommendations, enticing ordinary retail investors to purchase shares of the two targeted companies. To operate these groups anonymously, the masterminds used SIM cards procured in Haryana and Mumbai using identity documents belonging to other individuals. However, the entire operation and command center for these messaging groups was physically located in Bhavnagar, Gujarat. Influenced by these constant promotional messages, the buyer base for the stocks surged dramatically from just 3,400 to over one lakh participants. Sudden Collapse and 70 Percent Crash The scheme unraveled abruptly on February 25, 2026, when all the operating WhatsApp groups were suddenly deleted. The moment the communication channels went offline, the shares of both companies hit consecutive lower circuits. Within a matter of days, the stock values plummeted by roughly 70 percent. This steep and sudden downturn inflicted severe financial losses on more than one lakh small retail investors who found themselves trapped in un-tradable assets as selling orders could not be executed due to the locking of the lower circuits. Seizures Made During the Nationwide Searches During the course of the day-long raids, Enforcement Directorate teams searched the corporate offices of both firms as well as the residential premises of their promoters. In addition, inspections were carried out at the properties of individuals who had acquired shares at heavily discounted rates and various stock-broking entities. Investigators also scrutinized the premises linked to the operators who managed the promotional messaging groups. The coordinated crackdown yielded numerous suspicious physical documents, multiple digital devices, and comprehensive records of stock transactions. Authorities are continuing their deeper probe into the complex web of financial transactions and money laundering. What this means for you This major financial investigation carries significant practical implications for retail investors and market participants across the country. • Across India: Investors must exercise extreme caution regarding unverified stock trading tips circulated on messaging applications and social media platforms. Such incidents highlight the critical need to protect personal capital from coordinated pump and dump schemes run by anonymous operators. • In Maharashtra and Gujarat: Local stock brokers and financial intermediaries operating within these targeted regions will face heightened regulatory scrutiny. This enforcement action aims to dismantle local networks involved in facilitating illicit market manipulation and fraudulent share allotments. Why this happened The enforcement action was initiated after investigators uncovered a sophisticated syndicate orchestrating artificial price inflation and fraudulent share distributions in the capital market. • Fraudulent Allotments: The companies issued millions of shares and warrants at preferential rates to closely connected entities funded through circular transactions. • Social Media Exploitation: Perpetrators established deceptive community groups on messaging platforms to feed daily trading recommendations and lure unsuspecting retail investors into the stocks. • Abrupt Disconnection: The sudden deletion of these communication channels triggered immediate panic selling, causing the targeted equities to hit lower circuits and collapse in value. Questions & Answers 1. Which companies were targeted in the ED raids? The raids targeted RM Drip and Sprinklers Systems Ltd and R&B Denims Ltd. 2. On what date were these raids conducted? The raids were conducted on October 16, 2026. 3. Which states and cities were covered during the operation? The searches covered Mumbai and Nashik in Maharashtra, alongside Ahmedabad, Surat, Gandhinagar, and Bhavnagar in Gujarat. 4. How were retail investors lured into the trap? Investors were lured through daily trading tips and recommendations broadcasted across dedicated WhatsApp community groups. 5. By what percentage did the stock prices drop? The stock prices plummeted by roughly 70 percent after the messaging groups were abruptly deleted. https://trendkia.com/en/crime/ed-ki-badi-karwai-chhe-sahro-mein-29-thikano-par-chhape-48215 TrendKia — Har trend, sabse pehle.