The ED & I-T raids should not be carried out till the Lok Sabha elections are over
The investigation revealed that these beneficiaries had acquired shares of the targeted scrips at low prices through preferential warrants. “The preferential allottees took advantage of this increased buying interest and dumped a part of their shareholding to large number of investors… During the searches, ED identified clusters of family-linked beneficiaries of the scheme, including Affluence Gems and others, Kawa HUF and others, and Komalay Consultancy and others. The share prices were then pumped up through a systematic campaign run over WhatsApp, Twitter (X), SMS and other channels,” the release added.
“The PMLA investigation revealed that between April 2023 and March 2024, the two companies issued over 3.5 crore shares and convertible warrants to selected persons and entities.
Over the following months, the share prices were steadily pushed up, while the shares largely stayed in the same hands,” the ED said in a release. A large part of the money paid for these allotments came from a small circle of connected persons, firms and lenders.