What led to the ED seizing Rs 4 crore in gold and silver from Gujarat's stock market advisor?
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Synopsis
In a significant crackdown on financial fraud, the Enforcement Directorate has seized gold and silver worth over Rs 4 crore from a stock market advisor in Gujarat. This case uncovers a web of deceit targeting common investors, revealing alarming practices in the financial advisory sector.
Key Takeaways
- ED's Actions: The Enforcement Directorate seized Rs 4 crore worth of precious metals in a fraud investigation.
- Fraud Scheme: The accused misled investors promising high returns but used the funds for personal gain.
- Multiple FIRs: At least six FIRs were registered in various states involving significant amounts of fraud.
- Regulatory Violations: The involved companies operated without necessary SEBI registration.
- Investor Awareness: This case highlights the importance of due diligence in investment decisions.
New Delhi, Jan 1 (NationPress) The Enforcement Directorate (ED) has confiscated several kilograms of gold and silver, valued at more than Rs 4 crore, from the Mehsana district of Gujarat, as part of an investigation into a fraudulent stock market scheme, an official reported on Thursday.
According to the ED's Ahmedabad Zonal Office, the seizure included 110 kg of silver bullion worth Rs 2.4 crore; approximately 1.296 kg of gold bullion valued at Rs 1.7 crore; about 39.7 kg of silver jewelry; Indian cash totaling Rs 38.8 lakh; foreign currencies amounting to at least Rs 10.6 lakh; and numerous property documents linked to the case involving Himanshu alias Pintu Bhavsar and others.
The ED's actions stemmed from a fraudulent stock market investment scheme targeting common investors, as outlined under the Prevention of Money-Laundering Act (PMLA), 2002, the statement added.
The investigation was initiated following a First Information Report (FIR) filed by the Kheralu Police station in Mehsana, which accused Himanshu alias Pintu Bhavshar and others of various offenses under the Indian Penal Code, 1860.
The FIR revealed that the accused enticed the complainant to invest in the stock market with promises of substantial returns, only to defraud them by failing to return their investments.
Instead of investing the complainant's money in shares, the accused misappropriated it for personal use. Subsequently, investigations unveiled at least six additional FIRs lodged across different states in India, with a total fraudulent amount reaching Rs 10.87 crore.
It was disclosed that mastermind Bhavsar, along with his co-accused, established multiple offices in Mehsana, Visnagar, and Vadnagar to attract public investments under the guise of stock market investments.
They employed numerous staff to make routine calls to potential investors, enticing them with promises of high returns on their alleged stock market investments.
During the PMLA investigation, it surfaced that Himanshu Bharatkumar Bhavsar exploited an Investment Advisor Certificate issued by SEBI for personal gain through Vishwas Stocks Research Pvt. Ltd., Dalal Stocks Advisory Pvt. Ltd., and Devki Stocks Pvt. Ltd., which were involved in unregistered investment advisory services.
These entities lacked the necessary SEBI registration to operate as investment advisors, leading to a partnership with Bhavsar to circumvent regulations.
In its ruling, SEBI found Vishwas Stocks Research Pvt. Ltd., Dalal Stocks Advisory Pvt. Ltd., and Devki Stocks Pvt. Ltd. and their Directors, including Himanshu Bharatkumar Bhavsar alias Pintu Bhavsar, culpable for regulatory violations associated with offering investment advisory services.
Point of View
It is crucial to highlight the pressing need for regulatory oversight in the financial sector. The alarming rise in fraudulent schemes targeting common investors necessitates robust measures to safeguard public interests. The investigation by the Enforcement Directorate serves as a vital reminder of the potential risks involved in stock market investments and the importance of due diligence.
NationPress
05/01/2026
Frequently Asked Questions
Who is Himanshu alias Pintu Bhavsar?
Himanshu alias Pintu Bhavsar is the alleged mastermind behind the stock market investment fraud, targeting common investors in Gujarat.
What was the total amount defrauded in this case?
The total amount defrauded across various FIRs is estimated to be around Rs 10.87 crore.
What did the Enforcement Directorate seize?
The ED seized gold and silver bullion worth over Rs 4 crore, along with cash and property documents linked to the fraud.
What is the Prevention of Money-Laundering Act (PMLA)?
The PMLA is a law in India aimed at preventing money laundering and providing for the confiscation of property derived from or involved in money laundering.
What regulatory body is involved in this case?
The Securities and Exchange Board of India (SEBI) is involved as it regulates investment advisors and enforces compliance in the financial market.
