New Delhi: The Enforcement Directorate (ED) has conducted raids on 19 locations across Mumbai, Delhi, and Gurugram in connection with a ₹137 crore money laundering case involving Dentsu Communications India and Suumaya Industries. The raids, which took place on December 10, resulted in the seizure of ₹50 lakh in Indian and foreign currency and gold bars worth ₹3.4 crore.
The case stems from an FIR filed by the Mumbai Police, alleging that Dentsu and Suumaya, along with their promoters, embezzled funds under the pretense of offering benefits related to a non-existent Haryana government program called “Need to Feed.” The ED claims that the accused secured trade financing from NBFCs by falsely claiming to supply agro products for this fictitious program.
According to the ED, the accused created fake records, including lorry receipts and invoices, to create the impression that they were supplying agro products. The investigation also revealed that Suumaya Group engaged in circular transactions worth ₹5,000 crore, with only 10% of those transactions being genuine. These inflated transactions were used to mislead investors and artificially inflate share prices.
ALSO READ: Swiggy Instamart Accused of Copyright Infringement on Instagram
The ED alleges that Suumaya Industries’ turnover increased from ₹210 crore to ₹6,700 crore in just two years, causing its share price to skyrocket from ₹19 to ₹736 per scrip. This dramatic increase is attributed to the fraudulent circular transactions.
This is not the first time Suumaya Industries has faced legal trouble. In 2022, one of its directors was arrested for allegedly defrauding another company of ₹117 crore.
The ED’s investigation is ongoing, and further details are expected to emerge in the coming days.
