Enforcement Directorate cracks down on illegal portfolio firm in Gujarat

The crackdown stems from a complaint filed by the Securities and Exchange Board of India (SEBI) before the Special Court for SEBI cases in Greater Mumbai.

Ahmedabad: The Ahmedabad Zonal Office of the Enforcement Directorate (ED) has carried out search operations at four locations in Ahmedabad and Junagadh in connection with a suspected money laundering case involving M/s Alderbrooke Portfolio Management Services Private Limited and associated entities, ED officials said.

The crackdown stems from a complaint filed by the Securities and Exchange Board of India (SEBI) before the Special Court for SEBI cases in Greater Mumbai.

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SEBI alleged that Alderbrooke Portfolio Management Services Private Limited illegally raised nearly Rs 24.38 crore from clients under the guise of portfolio management, despite not being registered as a portfolio manager or holding any other valid authorisation.

The firm allegedly failed to return the collected funds.

According to ED’s preliminary findings, Alderbrooke entered into agreements and memorandums of understanding with clients and managed their investments in both cash and derivatives markets — all without SEBI registration, thereby violating Section 12 of the SEBI Act, 1992.

The searches led to the seizure of several incriminating documents linked to the firm’s unauthorised operations.

The investigation remains ongoing.

Gujarat has witnessed a notable surge in money laundering cases in recent years, with the ED intensifying its efforts to combat financial crimes across the state.

Between 2021 and 2023, the ED registered a significant number of cases under the Prevention of Money Laundering Act (PMLA), reflecting a broader national trend of increased scrutiny on financial irregularities.

One prominent case involves the arrest of Bahubali Shah, Director of Gujarat Samachar Ltd and Lok Prakashan Ltd, in connection with a money laundering investigation stemming from a 2023 complaint.

Shah, associated with more than 15 business entities, was granted interim bail on medical grounds following his arrest.

In another significant development, the ED attached assets worth more than Rs 6 crore linked to former Gujarat IAS officer Pradeep Sharma.

The action was part of a money laundering probe arising from a Bhuj crime branch FIR, alleging cheating and criminal breach of trust.

The ED also conducted raids at 19 locations across Gujarat in connection with cases related to the misappropriation of government funds in post offices.

These searches were based on several FIRs registered by the Anti-Corruption Bureau (ACB) and the Central Bureau of Investigation (CBI).