The has barred 10 entities, including Ashok Dilipkumar Jain, from buying, selling or dealing in the shares of Darjeeling Industries Ltd (DIL), after finding prima facie evidence of a fraudulent scheme involving preferential allotment of warrants, fund diversion and alleged price manipulation.
In a 62-page ex-parte interim order issued on Tuesday, the market regulator said the noticees appeared to have devised a scheme to manipulate the company’s shares through connected entities and circular movement of funds.
SEBI’s examination covered the period between September 2024 and December 2025, though it also examined transactions beyond this period to trace the flow of funds. The regulator said DIL’s revenue had been negligible for two years before Ashok Dilipkumar Jain became Managing Director in October 2024, after which the company reported a sharp improvement in financial performance.
According to the order, DIL issued 70 lakh warrants worth ₹11.76 crore on a preferential basis to 10 non-promoter allottees. SEBI alleged that many of these allottees were funded directly or indirectly by Jain or his connected entities to subscribe to the warrants.
The regulator said that of the ₹2.94 crore received as the initial 25 per cent subscription amount, ₹1.71 crore, or 58.16 per cent, was prima facie funded by Jain through connected entities. It further alleged that the ₹2.94 crore received by the company was transferred back to Jain within two days before being routed again through the company and subsequently diverted to several unrelated entities.
SEBI also found that payments were made to companies operating in businesses unrelated to DIL’s stated agricultural trading operations, including baby care products, aluminium recycling, laundry services and food processing, raising doubts over the commercial purpose of the transactions.
The regulator also carried out site visits at DIL’s registered office addresses in Mumbai and Rajkot and said the company was not found operating from either location. It further noted that the company’s website was non-functional.
The order said that evidence gathered from electronic devices and WhatsApp chats indicates Jain was in contact with Surendra Jain, who is already under investigation in another SEBI matter. The regulator observed that the chats showed a “common purpose of manipulating” DIL’s shares and referred to discussions on shareholder lists, company affairs and payments.
“Immediate action is required to be taken against Noticees… to restrain them from enriching themselves by benefitting from the fraudulent scheme devised by them and making wrongful gains which then might be siphoned off beyond the regulatory reach,” whole-time member Kamlesh Varshney said. It estimated that the noticees could potentially realise between ₹18 crore and ₹29.05 crore from their holdings if no restraint was imposed.
The interim order restrains all 10 noticees from dealing in DIL shares until further orders and directs them to cooperate with the ongoing investigation. The noticees have been given 21 days to file their replies and seek a personal hearing.