ED conducted Searches at 19 locations in Rs.137 Crore Money Laundering Case

As part of its ongoing investigation into the Summaya-Dentsu case, the Directorate of Enforcement (ED) conducted searches at 19 locations in Mumbai, Delhi, and Gurgaon. The searches were carried out on December 10 under the Prevention of Money Laundering Act (PMLA).

During the search operations, the ED discovered Rs.46 lakh in seized Indian currency, Rs.4 lakh in foreign currency, and Rs.3.4 crore in gold bars. During the search, other condemning documents pertaining to immovable property transactions, as well as digital devices, were discovered and seized.

The agency launched a probe based on a FIR filed by Worli Police Station against Dentsu Communications India Private Limited, Suumaya Industries Ltd, and its proprietors, among others. They are accused of conspiring together and embezzling funds of Rs.137 crore under the notion of promising future ‘Need to Feed program’ benefits.

According to the investigations, trade financing was obtained from NBFCs under the guise of the Government of Haryana’s ‘Need to Feed’ initiative to supply agricultural products. The accused have not received any government contracts, and no such program has ever existed. The agency stated that the accused did not provide any agro-product materials for any such scheme, but did fabricate “fake records, including fake lorry receipts and invoices.”

According to the ED, the search operations found that listed entities of the Suumaya group went into transactions totalling Rs.5000 crore, with only 10% of the transactions being real.

On the basis of the report, the transactions were conducted in a circular manner, resulting in a rise in turnover for all involved firms, including Dentsu India. Investors in the Suumaya group’s listed firms were misled into believing that such artificially inflated transactions would result in massive share price increases. Suumaya Industries Ltd’s turnover climbed from Rs.210 crore to Rs.6,700 crore within two years, from FY 2019-20 to FY 2021-22.