ED arrests Suumaya promoter Ushik Gala in ₹137 crore money laundering probe

The Enforcement Directorate (ED) has arrested Ushik Gala, promoter of the Suumaya Group of companies, in a significant escalation of its money laundering investigation involving Suumaya Industries Ltd, Dentsu Communications India Private Limited, and others.

Gala was taken into custody by the Mumbai Zonal Office on November 17, 2025, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, following detailed analysis of evidence collected during the probe. A special court has remanded him to ED custody until November 24, 2025.

The case originates from an FIR lodged at Mumbai’s Worli Police Station—later transferred to the Economic Offences Wing (EOW)—which accused Suumaya Industries, its promoters, Dentsu Communications India, and several other individuals of conspiring to embezzle approximately ₹137 crore. The alleged fraud was carried out by falsely promising advantages linked to a fabricated “Need to Feed” programme.

According to the ED, the Suumaya Group, with active involvement from certain employees of Dentsu India, orchestrated a fake Haryana government contract under the banner of the “Need to Feed” scheme. The objective was to secure trade financing by presenting fictitious business operations as legitimate transactions.

Investigators say that funds channelled to Suumaya entities were subsequently diverted by Ushik Gala to a network of dummy agro-trading companies based in Delhi and Haryana. These entities, acting through an intermediary, created the illusion of authentic procurement activity—although no real purchase of agricultural goods ever took place.

The ED’s findings suggest that the diverted money eventually returned to Gala through a web of shell companies using both cash and RTGS transfers. To support the appearance of large-scale operations, Suumaya allegedly generated fake invoices and fabricated lorry receipts, creating circular transactions amounting to nearly ₹5,000 crore. The agency notes that only about 10% of these trades were genuine, with the rest designed solely to inflate turnover.

This manipulation dramatically boosted Suumaya’s financial profile. Its turnover surged from ₹210 crore to approximately ₹6,700 crore within just two financial years, while its stock price rose from ₹19 to ₹736 per share—an increase the ED describes as “astronomical” and misleading to investors. Investigators believe the inflated transactions not only increased Suumaya’s valuation but also boosted the turnover of entities associated with Dentsu India.

The ED has previously conducted searches at 19 locations across Mumbai, Delhi, and Gurgaon as part of the probe. These searches yielded sizeable recoveries, including ₹46 lakh in Indian currency, foreign currency valued at ₹4 lakh, gold bars worth ₹3.4 crore, and a trove of digital devices and financial records. Officials say these materials provide substantial evidence of fund diversion, layering, and laundering.

Dentsu India, in its defence amidst ongoing scrutiny had maintained that the fraudulent activities were executed by third parties and certain former employees of InDeed, prior its acquisition. In response to the ED’s December 2024 visit to its Mumbai office, the company clarified that no documents, assets, or materials were seized. It emphasised that it takes fraud and misconduct seriously and reiterated its commitment to fully cooperating with authorities.

The ED continues to examine the extensive network of suspected shell entities, circular trades, and bogus contracts. Investigators say further revelations are expected as the case advances.