₹200-Crore WhatsApp Stock Scam: ED Raids 29 Premises including at Ahmedabad, Surat, Bhavnagar and Gandhinagar in Gujarat
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Summarized by AI; it may make mistakes. Check important info
Officials from the Enforcement Directorate (ED) raided 29 locations across Gujarat and Maharashtra, uncovering a Bhavnagar-controlled WhatsApp syndicate that rigged share prices and trapped over one lakh retail investors.
The crack team from the ED’s Mumbai Zonal Office-I executed simultaneous search operations in Ahmedabad, Gandhinagar, Surat, Bhavnagar, Mumbai, and Nashik under the Prevention of Money Laundering Act (PMLA). Official records confirm that the enforcement agency froze trading accounts worth approximately ₹200 crore belonging to key syndicate figures and shell entities.
Bhavnagar Identified as Ground Zero for WhatsApp Campaign
While the promotional WhatsApp communities operated under deceptive titles like "Multibagger Stocks" using SIM cards procured from Haryana and Mumbai, digital forensic tracking confirmed the network was operated directly out of Bhavnagar, Gujarat.
Operators working from the coastal city sent out daily stock tips encouraging retail investors to buy shares of two listed firms—Surat-headquartered R&B Denims Ltd and Nashik-based M/s R M Drip and Sprinklers Systems Ltd. The coordinated social media push caused the buyer base in these scrips to jump from 3,400 to more than 1,00,000 within weeks.
Mechanics of the Preferential Allotment Scheme
Investigation details reveal that the two companies issued over 3.5 crore shares and convertible warrants at nominal prices to a close-knit group between April 2023 and March 2024. Funds for these allotments were funnelled through connected lenders and private firms, ensuring that actual share ownership remained concentrated inside the syndicate while market prices were steadily inflated.
Among the primary beneficiaries identified in the raid findings are family-linked groups, including Affluence Gems, Kawa HUF, and Komalay Consultancy.
Sudden Group Deletion Triggers 70% Stock Crash
The artificial bubble burst on 25 February 2026, when the syndicate suddenly deleted all promotional WhatsApp channels. Having created artificial demand among small buyers, the preferential allottees dumped their holdings into the market, leaving retail buyers unable to exit their positions as both scrips hit consecutive lower circuits.
Within days of the syndicate’s exit, share values plummeted by over 70%, inflicting severe financial losses on small investors across the country.
Seizures and Ongoing PMLA Inquiry
Search teams targeting registered corporate offices, stock-broking firms, and promoter residences seized digital hardware, property deeds, financial ledgers, and share transaction logs.
"Incriminating documents and digital devices recovered during the searches are undergoing forensic examination to trace the complete chain of proceeds of crime," an ED official stated, adding that further legal proceedings and asset attachments under the PMLA remain underway.
