Mumbai: The Enforcement Directorate (ED) Mumbai on Wednesday carried out searches at various locations in Mumbai, Surat, and Delhi in connection with an ongoing money laundering investigation against M/s Iceworth Reality LLP and other entities.
The search operations led to the seizure and freezing of movable properties in the form of diamonds, bank funds, Demat account holdings, and cash totaling approximately Rs 38.57 crore. Various incriminating documents and digital devices were also recovered and seized, the financial agency stated on Friday.
The agency's money laundering investigation was initiated based on a complaint under various sections of the SEBI Act, 1992.
The central financial agency stated that the current case pertains to the manipulation of stock prices of the scrip of Sunrise Asian Limited (SAL) by M/s Iceworth Reality LLP and other accused persons and entities in collusion with several interconnected group entities, thereby making unlawful profits at the expense of bona fide investors.
The increase witnessed in the price of the scrip during the investigation period was not in synchronization with the actual financial performance of the company and was solely due to the manipulations committed by the group entities, the ED stated in their statement.
According to the sources in the investigation revealed that 83 connected entities were responsible for manipulating the price of Sunrise Asian's scrip.Among these, 77 entities served as counterparties to the sale transactions conducted by 1059 entities or allottees. These transactions were executed at prices that were artificially inflated due to the manipulation.
The financial probe agency's investigation has revealed that several entities and individuals derived huge profits by manipulating the prices of the scrip of Sunrise Asian Limited (SAL), causing losses to genuine investors.
The illegal profits derived in this manner were routed through the accounts of different entities and individuals, some of whom were engaged in the business of diamond trading, the ED stated.
The agency is further investigating the matter, and more developments are likely revealed in the case.
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