Dentsu India Clarifies ED Visit Linked to InDeed Business Only

Dentsu India has responded to the recent visit by the Enforcement Directorate (ED) to its Mumbai office, clarifying that the investigation was limited to the InDeed business. InDeed, a CSR advisory and consulting practice previously operated by the agency, was shut down following suspicions of fraudulent activity.

In a statement issued by Dentsu India, the company explained that in 2021, they had identified fraudulent activities carried out by third parties and some former InDeed employees, which led to criminal complaints being filed. Dentsu further stated that the matter had been proactively reported to the relevant authorities, and they have been cooperating fully with investigations.

ED’s Investigation into Money Laundering

The Enforcement Directorate’s raid on December 10, 2024, was part of an ongoing money laundering investigation involving an alleged embezzlement of Rs 137 crore. The investigation centers on the actions of Dentsu Communications India, Suumaya Industries, and its promoters.

According to reports, the ED carried out raids at 19 locations across Mumbai, Delhi, and Gurgaon, in connection with this case. Despite the raids, Dentsu India confirmed that no properties were seized during the visit to their office. The company emphasized that the investigation was focused solely on the InDeed business and was not related to its broader operations.

Dentsu India’s Stance on Fraud Prevention

Dentsu India reassured the public that it maintains a zero-tolerance policy towards fraud and misconduct. The company expressed its commitment to continue cooperating with the authorities to ensure a thorough investigation. Dentsu also stated that it takes any wrongdoing very seriously and is dedicated to upholding ethical standards across its business operations.

This is not the first time Dentsu has been linked to legal scrutiny. The money laundering case was originally filed by the Worli Police Station in March 2022, stemming from alleged financial irregularities related to Suumaya Industries. The case has since been expanded to include investigations into the involvement of Dentsu India in the alleged embezzlement of funds.

Background of the Case

The investigation into the Suumaya-Dentsu money laundering case revolves around the suspected embezzlement of Rs 137 crore by individuals connected to both companies. The money laundering charges are tied to a series of suspicious financial transactions, and the ED has been probing the matter for several months.

While Dentsu India has reiterated that it has no involvement in the fraudulent activities, the company has expressed its commitment to transparency and working closely with the authorities as they continue their investigation. The case is currently under investigation, and more developments are expected in the coming weeks.