The Securities and Exchange Board of India (SEBI) on Thursday conducted a search at the residence of IPS officer Ravindra Patel in Khedbrahma. The 2016-batch officer, currently serving as Superintendent of Police, was present alongside his father, D N Patel, a retired IPS officer of IG rank.
The raid was part of an ongoing investigation into financial irregularities related to the Sadhna Broadcast pump-and-dump case.
The case involves allegations of stock manipulation linked to the YouTube broadcasting firm, Sadhna Broadcast. Between July and September 2022, SEBI received complaints regarding price manipulation and share offloading.
Investigators found that certain key sellers of the company’s shares were connected to YouTube creators who had promoted the stock using misleading content and exaggerated price targets.
In January 2024, SEBI issued a show-cause notice to several entities, including Patel, accusing them of engaging in fraudulent trading. The regulator demanded explanations on why penalties, including the recovery of wrongful gains, should not be imposed.
Prior to this, an interim order had been issued on March 2, 2023, following an in-depth investigation.
Seeking to resolve the case, Patel submitted a settlement application in February 2024 without admitting or denying SEBI’s findings. After discussions with the regulator’s internal committee, a settlement agreement was reached.
Under its terms, Patel agreed to pay Rs 72.8 lakh as a settlement amount and Rs 1.9 crore as disgorgement. He also accepted a voluntary six-month ban from the securities market. SEBI’s high-powered advisory committee subsequently approved the settlement.
A settlement order issued on February 27 confirmed that Patel had complied with the payment terms. However, SEBI retains the right to reopen the case if any discrepancies or violations of the settlement conditions are identified.
Meanwhile, Patel’s wife and brother-in-law were also questioned as part of the investigation.
Central agencies are scrutinising the officer’s financial dealings, including his investments and possible links to other entities in the securities market. Patel’s father has also been questioned.
The probe remains ongoing.
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