Enforcement Directorate freezes ₹200 crore and raids firms over alleged pump-and-dump scheme

On 16 October, the Enforcement Directorate searched premises in 20 locations across Maharashtra and Gujarat, freezing assets worth ₹200 crore. The operation, conducted under the Prevention of Money-Laundering Act, targeted the offices of two firms, the homes of their promoters, and several stock-broking and finance entities. Authorities say the two companies issued more than 3.5 crore shares and convertible warrants to a small group of connected persons from April 2023 to March 2024, using the proceeds to boost share prices.

Between December 2025 and February 2026, messaging groups such as “Multibagger Stocks” circulated daily purchase recommendations, drawing retail investors and further inflating prices. The scheme allegedly allowed preferential allotters to sell large blocks of stock to the new buyers at elevated prices. Seized evidence includes incriminating documents, digital devices and property records, and investigators identified family-linked beneficiaries who obtained shares at low cost before the price-pump campaign.