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ED Raids 29 Locations Across 6 Cities After Investors Lose Crores in Multibagger Stock Scam
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News18•16-10-2026, 16:03
ED Raids 29 Locations Across 6 Cities After Investors Lose Crores in Multibagger Stock Scam
- •The Enforcement Directorate conducted simultaneous raids at 29 locations across 6 cities in Maharashtra and Gujarat.
- •The investigation targets stock manipulation involving R M Drip & Sprinklers Systems Limited and R & B Denims Limited under the PMLA.
- •Over one lakh retail investors were lured into buying shares through WhatsApp community groups promising multibagger returns.
- •Share prices crashed by up to 70 percent, hitting lower circuits as soon as the promotional WhatsApp groups were suddenly deleted.
- •During the searches, ED recovered incriminating documents, digital devices, and share transaction records from promoters and brokers.
Key Questions Answered
The ED's investigation is directly linked to the shares of two listed companies: R M Drip & Sprinklers Systems Limited and R & B Denims Limited.
Between December 2025 and February 2026, perpetrators created WhatsApp groups named "Multibagger Stocks" operated from Bhavnagar, Gujarat, using SIM cards from Haryana and Mumbai to send daily buying tips.
On February 25, 2026, the WhatsApp groups promoting the stocks were suddenly deleted, causing both companies to hit the lower circuit and their share prices to plummet by about 70 percent.
