Ahmedabad, Jan 2 The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has made a major seizure in connection with a fraudulent stock market investment scam that targeted common investors.
Acting under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the ED recovered proceeds of crime worth several crores from the accused, Himanshu alias Pintu Bhavsar, and others.
During the search and seizure operations, the ED recovered silver bullion weighing 110 kg valued at approximately Rs 2.4 crore, gold bullion weighing around 1.296 kg worth Rs 1.7 crore, silver jewellery weighing about 39.7 kg, Indian currency amounting to Rs 38.8 lakh, and foreign currencies valued at approximately Rs 10.6 lakh.
Additionally, various property-related documents suspected of being linked to the proceeds of crime were also seized.
The investigation was initiated based on an FIR registered by Kheralu Police Station in Mehsana district under multiple sections of the Indian Penal Code.
As per the complaint, the accused lured investors by promising high returns through stock market investments but subsequently defrauded them by neither investing the funds nor returning the money. Instead, the funds were allegedly diverted for personal use.
Further investigation revealed that at least six more FIRs have been registered against the accused in different states, with the total fraud amount estimated at around Rs 10.87 crore.
The ED found that the alleged mastermind, Himanshu alias Pintu Bhavsar, along with his associates, had set up multiple offices in Mehsana, Visnagar, and Vadnagar to attract funds from the general public.
Employees were hired to make regular phone calls to potential investors, enticing them with promises of high returns in the stock market. The probe also uncovered serious regulatory violations.
Himanshu Bharatkumar Bhavsar was found to have misused an Investment Advisor Certificate issued by the Securities and Exchange Board of India (SEBI) in his individual capacity for the benefit of three companies - Vishwas Stocks Research Pvt. Ltd., Dalal Stocks Advisory Pvt. Ltd., and Devki Stocks Pvt. Ltd.
These entities were operating as unregistered investment advisors without the requisite SEBI registration. In its order, SEBI held the companies and their directors, including Himanshu Bhavsar, responsible for violations related to unauthorised investment advisory activities.
The ED has stated that further investigation into the case is underway, as authorities continue to trace additional assets and identify the full extent of the money laundering network involved in the fraud.
--IANS
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