Ahmedabad, Jan 2: The Enforcement Directorate (ED) has seized assets worth more than ₹4.5 crore in connection with a fraudulent stock market investment scam in Gujarat, targeting small investors through unauthorised advisory services, officials said on Tuesday.
The action was carried out by the ED’s Ahmedabad Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, following a probe into the alleged diversion of investor funds.
According to the agency, assets seized during search operations include 110 kg of silver bullion valued at ₹2.4 crore, 1.296 kg of gold bullion worth ₹1.7 crore, 39.7 kg of silver jewellery, ₹38.8 lakh in Indian currency, and foreign currencies valued at approximately ₹10.6 lakh. Officials also recovered property-related documents suspected to be linked to the proceeds of crime.
The case centres on Himanshu Bharatkumar Bhavsar, also known as Pintu Bhavsar, who is alleged to have masterminded the scam. Investigators said three firms—Vishwas Stocks Research Pvt. Ltd., Dalal Stocks Advisory Pvt. Ltd. and Devki Stocks Pvt. Ltd.—operated as investment advisers without mandatory registration from the Securities and Exchange Board of India (SEBI).
According to the ED, the firms allegedly misused Bhavsar’s individual SEBI-issued investment adviser certificate to conduct unregistered advisory activities in violation of regulatory norms. SEBI has held the companies and their directors responsible for unauthorised investment advisory services.
Investigators said the accused set up multiple offices in Mehsana, Visnagar and Vadnagar, employing callers to lure investors by promising abnormally high returns from stock market investments. However, funds collected from investors were allegedly diverted for personal use and were never invested in shares.
The ED initiated the probe based on an FIR registered at Kheralu police station in Mehsana district. As the investigation expanded, at least six additional FIRs were registered across different states, with the total alleged fraud amount pegged at ₹10.87 crore.
“The Directorate of Enforcement recovered proceeds of crime worth several crores in a fraudulent stock market investment fraud involving common investors,” the agency said in an official statement.
Further investigation in the case is ongoing.
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