ED seizes assets worth ₹3.9 crore in money laundering probe

The agency's investigation stems from a Worli police case against the accused for allegedly embezzling ₹137 crore from certain non-banking financial companies

Mumbai: The Enforcement Directorate has seized movable assets worth approximately ₹3.9 crore during searches in Mumbai, Delhi and Gurgaon as part of its money laundering investigation into Dentsu Communications India Private Limited and Suumaya Industries Ltd and their promoters.

The Enforcement Directorate has seized movable assets worth approximately ₹3.9 crore during searches in Mumbai, Delhi and Gurgaon. (Getty image)

The agency's investigation stems from a Worli police case against the accused for allegedly embezzling ₹137 crore from certain non-banking financial companies under the false pretence of future benefits from a 'Need to Feed' programme.

The ED's investigation revealed that trade financing was allegedly obtained by claiming involvement in a 'Need to Feed' programme of the Haryana state government to supply agricultural products during the Covid pandemic. However, the accused had neither received any contract from the Haryana government nor did such a programme exist, according to the ED. The agency alleged that the accused entities never supplied any agricultural products for any such programme.

To create a façade of agricultural supply operations, the accused allegedly conspired to fabricate records, including lorry receipts and invoices. Attempts to reach Dentsu Communications India Private Limited and Suumaya Industries for comment regarding the ED's allegations and actions were unsuccessful.

During the searches, the agency seized movable assets including ₹46 lakh in cash, foreign currency worth ₹4 lakh, and gold bars valued at ₹3.4 crore. The agency also recovered alleged incriminating documents related to immovable property transactions and digital devices, which are currently under scrutiny.

The ED's search operations revealed that Suumaya group's listed entities had allegedly conducted transactions worth ₹5,000 crore, of which only 10 per cent were genuine, the agency announced on Thursday. These transactions were allegedly executed in a circular pattern, inflating the turnover of involved entities including Dentsu India. Investors in the group's listed entities were allegedly misled by these artificially inflated transactions, resulting in significant share price increases.

Suumaya Industries Ltd's turnover allegedly surged from ₹210 crore to ₹6,700 crore between 2019-20 and 2021-22, affecting the share price dramatically—a ₹19 scrip rose to ₹736 during this period, according to the ED.

The alleged circular transactions also led to exponential turnover increases in entities bidding for government contracts and start-ups for valuation purposes, ED sources said. The agency's investigation revealed this was allegedly orchestrated in collaboration with stock brokers and merchant bankers, with cash payments made for commodities contracts on the National Commodity and Derivatives Exchange Limited and for acquiring companies subsequently listed on the stock exchange.

In a statement to HT, Dentsu India said, "In 2021, we identified suspected fraudulent activity conducted by third parties and some of InDeed’s former employees against whom criminal complaints have also been filed. This activity was limited to the InDeed business only. Three years ago, we proactively reported the matter to the relevant authorities and have been fully co-operating since. It is in connection with the same matter that the Enforcement Directorate (“ED”) visited Dentsu India’s office in Mumbai on December 10, 2024. The ED has not found or seized any properties from Dentsu’s premises. We take fraud and wrong-doing very seriously with a zero-tolerance policy towards any such behaviour. We will continue to co-operate with the authorities."