ED Raids NSE-listed Debock Industries in Rs49 Crore Rights Issue Scam; Rolls Royce, Rs78 Lakh Cash Seized

Moneylife Digital Team 07 July 2025

Economy & Nation

The Jaipur zonal office of the directorate of enforcement (ED) has unearthed a major financial fraud involving National Stock Exchange (NSE)-listed Debock Industries Ltd (DIL), conducting multiple search operations last week at several premises in Jaipur and Kota in Rajasthan. The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and targeted the residence and office of the company’s chairman, Mukesh Mahavar alias Mukesh Manveer Singh, and his associates.

ED, Jaipur Zonal Office has conducted search operations on 04.07.2025 at several locations in Jaipur and Kota districts of Rajasthan at the residence and office premises of the Chairman i.e. Mukesh Mahavar alias Mukesh Manveer Singh of M/s. Debock Industries Limited (a NSE listed… pic.twitter.com/zRbK6v6T8b
— ED (@dir_ed) July 7, 2025

ED’s investigation stems from a first information report (FIR) filed by Rajasthan police against Abhishek Khandelwal, Najiya Bano and others, as well as a prosecution complaint filed by market regulator Securities and Exchange Board of India (SEBI) against Debock Industries, Mr Mahavar, Sunil Kalot and Priyanka Sharma. The company had floated a rights issue in June 2023, raising Rs49.09 crore from unsuspecting investors.

According to ED's findings, DIL grossly manipulated its financial records, falsified bank statements, reported fictitious sales and purchases, and engaged in round-tripping of funds. This enabled the company to migrate to the main board of the NSE, giving it credibility to issue the rights shares. However, instead of deploying the raised funds for business expansion, the promoters and their associates allegedly siphoned off the entire amount for personal enrichment.

In a stunning revelation, ED officials discovered that low-level employees were fraudulently appointed as directors in the company to mislead stock exchanges and regulatory authorities. Preliminary findings indicate that significant sums were illegally transferred to overseas entities and diverted into real estate investments.

The search operation also led to the seizure of Rs78 lakh in unaccounted cash and four high-end luxury vehicles — a Rolls Royce Phantom, Bentley Mulsanne, Mercedes Benz G-Wagon (Brabus), and a Toyota Land Cruiser. Additionally, officials recovered a trove of incriminating evidence including property documents, bank records and digital storage devices that are now being analysed.

“The extent of manipulation is staggering,” an ED official says, adding that the rights issue appears to have been used purely as a vehicle for financial fraud. “The promoters created an illusion of financial health to defraud retail investors and regulatory bodies.”

Debock Industries, originally listed on the NSE’s SME platform, reportedly inflated share prices to lure investors and boost the value of its rights issue. Once the funds were collected, they were siphoned off in a systematic manner through bogus transactions and shell entities.

While ED has not yet confirmed the full extent of overseas fund transfers, preliminary leads suggest a coordinated effort to divert investor money outside India and convert it into physical assets. Several of these assets are suspected to be benami and are now under scrutiny.

The operation underscores the growing concern over misuse of stock market instruments by dubious promoters to raise funds from the public under false pretences. ED’s probe is expected to expand further as investigators track the money trail and identify all beneficiaries involved in the scam.

Further investigation is ongoing and more seizures and arrests are likely as authorities piece together the network of entities and individuals behind this elaborate financial fraud.

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