SABARKANTHA: The Securities and Exchange Board of India (SEBI) has launched a high-profile investigation into alleged financial misconduct, conducting searches at the residence of Ravindra Patel, a 2016-batch Indian Police Service (IPS) officer, in his ancestral village of Rodra, Khedbrahma.
The operation, which marks a rare instance of SEBI targeting a senior law enforcement official in Gujarat, is part of a broader inquiry into stock market manipulation linked to Sadhna Broadcast, a company accused of orchestrating a deceptive scheme to inflate its share prices.
A Deepening Investigation into Sadhna Broadcast
The SEBI probe centers on allegations of stock manipulation involving Sadhna Broadcast, a listed company on the Bombay Stock Exchange. Between July and September 2022, the regulator received multiple complaints about suspicious price surges and subsequent share offloading in the company’s stock.
Investigations revealed a coordinated effort where key sellers, allegedly connected to the company, collaborated with YouTube content creators to promote the stock. These creators posted misleading videos with exaggerated price targets, luring unsuspecting retail investors into buying shares at artificially inflated prices.
In January 2024, SEBI issued show-cause notices to several entities, including Patel, accusing them of engaging in fraudulent trading practices that violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations, 2003.
The regulator demanded explanations for why penalties, including the disgorgement of illicit profits, should not be imposed. Patel, who settled the case in February 2025 by paying Rs 72.8 lakh as a settlement fee and Rs 1.9 crore in disgorged profits, also accepted a six-month ban from the securities market. However, SEBI’s recent raids suggest the investigation is far from over, with the regulator retaining the right to reopen the case if new evidence emerges.
Unprecedented Raids on a Senior Officer
The searches at Patel’s residence in Rodra village were not limited to his immediate property. SEBI extended its operation to the homes of Patel’s relatives in nearby Galodia village, indicating a thorough examination of his financial dealings. The regulator also conducted a parallel search at Patel’s house in the Barzin area of Vadodara, where he previously served. Patel, a seasoned officer who has held postings in Patan, Gandhinagar, and Vadodara, is the son of D.N. Patel, a retired Inspector General of Police, who was reportedly present during the raid in Khedbrahma.
This marks the first time in Gujarat’s history that SEBI has raided the residence of an IPS officer, a move that has sent shockwaves through administrative and financial circles. The operation is believed to be aimed at uncovering evidence of irregularities in stock market and commodity transactions, with central agencies now scrutinizing Patel’s broader financial dealings, including his investments and potential ties to other market entities.
A Wider Net and Lingering Questions
SEBI’s actions come amid growing concerns over the misuse of digital platforms to manipulate financial markets. The Sadhna Broadcast case has already drawn significant attention, with 61 entities, including high-profile figures like Bollywood actor Arshad Warsi and his wife Maria Goretti, previously penalized for their roles in the scheme.
The stock, which soared to Rs 34.80 on August 16, 2022, has since plummeted to rs 2.77, leaving countless retail investors with substantial losses.
While SEBI has yet to release an official statement, sources indicate that the scope of the investigation may expand in the coming days, depending on the findings from the current searches. The involvement of a senior IPS officer raises questions about the intersection of public office and financial misconduct, as well as the potential for systemic vulnerabilities in India’s regulatory framework.
As the probe deepens, it underscores the challenges of policing financial markets in an era where social media can amplify deceptive practices with devastating consequences for investors.