Ahmedabad, Jan 2 (NationPress) The Directorate of Enforcement (ED), Ahmedabad Zonal Office, has conducted a significant asset recovery operation related to a fraudulent stock market investment scheme that targeted everyday investors.

Under the framework of the Prevention of Money Laundering Act (PMLA), 2002, the ED has successfully seized proceeds of crime totaling several crores from the main suspect, Himanshu alias Pintu Bhavsar, and others involved.

During the execution of search and seizure activities, the ED recovered 110 kg of silver bullion valued at around Rs 2.4 crore, 1.296 kg of gold bullion worth approximately Rs 1.7 crore, 39.7 kg of silver jewelry, Indian currency totaling Rs 38.8 lakh, and foreign currency estimated at about Rs 10.6 lakh.

Moreover, various documents related to properties suspected to be linked to the illicit proceeds were also confiscated.

The investigation commenced following an FIR lodged by Kheralu Police Station in the Mehsana district under several sections of the Indian Penal Code.

According to the complaint, the accused enticed investors with promises of substantial returns from stock market investments but ultimately defrauded them by failing to invest the funds or return their money. Instead, the money was allegedly redirected for personal expenses.

Further inquiries revealed that at least six additional FIRs have been filed against the accused across various states, with the total fraud amount approximated at Rs 10.87 crore.

The ED discovered that the alleged mastermind, Himanshu alias Pintu Bhavsar, along with his accomplices, established multiple offices in Mehsana, Visnagar, and Vadnagar to solicit funds from the public.

Employees were recruited to make frequent calls to potential investors, luring them with promises of high stock market returns. The investigation also uncovered significant regulatory infractions.

Himanshu Bharatkumar Bhavsar was found to have misused an Investment Advisor Certificate from the Securities and Exchange Board of India (SEBI) for the benefit of three companies - Vishwas Stocks Research Pvt. Ltd., Dalal Stocks Advisory Pvt. Ltd., and Devki Stocks Pvt. Ltd..

These firms were operating as unregistered investment advisors without the necessary SEBI authorization. In its ruling, SEBI held the companies and their directors, including Himanshu Bhavsar, accountable for infractions related to unauthorized investment advisory operations.

The ED has stated that the investigation is still ongoing, as officials continue to trace additional assets and uncover the complete scope of the money laundering network involved in this fraud.