Breaking: Suumaya–Dentsu case: ED seizes and attaches assets worth ₹35.22 cr in alleged ₹137 cr fraud

The Enforcement Directorate (ED) has provisionally attached movable and immovable assets worth ₹35.22 crore belonging to the Suumaya Group and its promoters as part of an ongoing money laundering investigation into alleged financial fraud, market manipulation, and diversion of investor funds.

According to an official statement issued by the Mumbai Zonal Office of the ED on January 14, 2025, the attachment has been carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The attached assets comprise bank balances, demat account holdings, mutual fund investments, and two immovable properties, reflecting the agency’s efforts to secure proceeds allegedly generated from illicit activities.

The latest attachment follows a wider probe into the Suumaya Group, which is accused of laundering proceeds of crime amounting to approximately ₹137 crore through a complex web of shell entities, circular transactions, and fictitious business operations.

Origin of the Case and Alleged Fund Diversion

The ED initiated its investigation based on an FIR registered by Mumbai’s Worli Police Station—subsequently transferred to the Economic Offences Wing (EOW)—against Suumaya Industries Ltd, its promoters, and other associated entities under multiple sections of the Indian Penal Code.

Investigators allege that the accused orchestrated a scheme under the guise of a so-called “Need to Feed Programme”, falsely promising future benefits to raise funds from financiers. The money was allegedly siphoned off rather than deployed for genuine business purposes.

Link to Dentsu India Under Scrutiny

The investigation also covers transactions involving Dentsu Communications India Pvt Ltd and other entities. The ED has alleged that inflated transactions linked to Suumaya not only enhanced its own turnover but also boosted the reported revenues of associated entities.

Dentsu India has stated that the alleged fraudulent activities were carried out by third parties and certain former employees prior to the acquisition of InDeed. The company has maintained that no assets or documents were seized during the ED’s visit to its Mumbai office in December 2024 and has reiterated its commitment to cooperating fully with investigating agencies.

Bogus Contracts and Fictitious Trading Activity

According to the ED, the Suumaya Group fabricated a fake Haryana government contract linked to the “Need to Feed” programme to secure trade financing. The funds raised were projected as revenue from agricultural procurement and trading activities that, investigators say, never actually occurred.

The agency claims that promoter Ushik Gala diverted these funds to multiple dummy agro-trading firms based in Delhi and Haryana via intermediaries. These entities were allegedly used to create the appearance of legitimate procurement transactions, even though no physical movement or purchase of agricultural commodities took place.

The diverted funds were then routed back to Gala through layered transactions involving cash movements and RTGS transfers, passing through several shell companies to obscure the money trail.

Artificial Inflation of Turnover and Valuation

To support the façade of large-scale operations, the ED alleges that Suumaya generated fake invoices and fabricated lorry receipts, resulting in circular transactions worth nearly ₹5,000 crore. Investigators estimate that only about 10% of these transactions were genuine, while the rest were allegedly fictitious and aimed at inflating the group’s reported turnover.

As a result, Suumaya’s reported revenue surged from ₹210 crore to approximately ₹6,700 crore within just two financial years—an increase of over 3,000%. The ED noted that this sharp escalation in turnover significantly boosted the company’s perceived valuation and financial standing, misleading lenders, investors, and other stakeholders.

A graphical analysis conducted by the agency indicates that the spike in reported revenue between FY20 and FY22 coincided with a dramatic rise in Suumaya Industries Ltd’s share price.

Share Price Boom and Bust

Market data cited by the ED shows that Suumaya Industries’ stock surged from around ₹19 per share to a peak of ₹736 during 2020–21. The agency stated that the artificially inflated turnover played a crucial role in driving investor interest and pushing the share price to what it described as “astronomical levels”, before the stock entered a prolonged decline.

Investigators believe the manipulation of financial statements and trading volumes distorted the company’s true asset quality and earnings potential, ultimately eroding investor wealth when the stock collapsed.

Searches, Seizures, and Arrest

As part of the investigation, the ED has conducted search operations at 19 locations across Mumbai, Delhi, and Gurgaon. These searches resulted in the seizure of movable assets worth ₹3.9 crore, including ₹46 lakh in cash, foreign currency valued at ₹4 lakh, and gold bars worth approximately ₹3.4 crore, along with extensive digital and financial records.

In a key development, the ED arrested Ushik Gala, promoter of the Suumaya Group, on November 17, 2025, under Section 19 of the PMLA. A special court subsequently remanded him to ED custody until November 24, 2025.

Probe Continues

The ED said the investigation is ongoing, with further attachments and actions likely as analysis of seized documents, digital evidence, and financial trails continues. The agency reiterated that cases involving financial fraud, artificial inflation of assets, and manipulation of capital markets pose a serious threat to investor confidence and economic integrity.