R M Drip Discloses ED Search at Company Office and Promoter Residence

Key Takeaways

• The Enforcement Directorate searched R M Drip's registered office and the residential premises of its promoter between October 16 and October 17, 2026.
• R M Drip said it has not been informed by the authority about any specific violation, direction or order linked to the search proceedings.
• The company said the ED action has not had a material impact on its financial position, business operations or other activities at present.

R M Drip and Sprinklers Systems Limited has disclosed that the Enforcement Directorate searched its registered office and the residential premises of its promoter as part of proceedings conducted between October 16 and October 17, 2026.

In a stock exchange filing dated October 19, the company said the search began at 7:15 am on Friday, October 16, and concluded at 2:35 am on Saturday, October 17. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations.

R M Drip said that, based on the information available to it, the proceedings have not caused any material impact on its financial position, operations or other business activities.

Company Says Details of Alleged Violation Have Not Been Communicated

The annexure to the filing identifies the Enforcement Directorate, Ministry of Finance, as the authority that carried out the search. R M Drip also said that no direction or order had been communicated by the authority and that it had not yet been informed about the violation or contravention, if any, alleged against the company.

That distinction is important because the company's exchange disclosure confirms the search itself but does not specify the allegations being examined by the ED.

Separately, reports citing the Enforcement Directorate said searches were carried out at 29 premises across Mumbai, Nashik, Ahmedabad, Gandhinagar, Surat and Bhavnagar on October 16 under the Prevention of Money Laundering Act. The reported investigation concerns alleged manipulation in shares of listed companies including R M Drip and Sprinklers Systems and R&B Denims.

According to those reports, the locations searched included company premises, promoter residences, premises linked to certain share allottees, stock-broking and finance firms, and people suspected of operating promotional WhatsApp groups. These are allegations forming part of an ongoing investigation and have not been established through a final adjudication. 

Reports citing the ED also said the investigation examined the issuance of more than 3.5 crore shares and convertible warrants by the two companies between April 2023 and March 2024. Promotional WhatsApp groups were allegedly used later to circulate stock tips, and the number of buyers in the two shares reportedly rose from around 3,400 to more than one lakh. 

R M Drip's October 19 filing does not comment on these wider allegations. Its disclosure is limited to confirming the search at its office and the promoter's residence, stating that the authority has not yet informed the company of any alleged violation and recording that there is no material operational or financial impact at present.