ED Raids Unearth Rs 137-Crore Suumaya-Dentsu Money Laundering Plot
ED uncovers Rs 137-crore Suumaya-Dentsu fraud in raids across Mumbai, Delhi, Gurgaon, revealing fake transactions and inflated turnovers in a massive money laundering scheme.
Deepanjali
The Enforcement Directorate (ED) conducted an extensive raid on 19 locations across Mumbai, Delhi, and Gurgaon on Tuesday as part of an investigation into the Suumaya-Dentsu money laundering case, linked to the alleged embezzlement of Rs 137 crore. The raids led to significant seizures, including Rs 46 lakh in cash, foreign currency worth Rs 4 lakh, and gold bars valued at Rs 3.4 crore.
The ED also confiscated critical property transaction documents, digital devices, and other evidence during the operation, which sheds light on the financial irregularities of the entities involved.
The case originated in March 2022, when the Worli Police Station registered an FIR against Dentsu Communications India, Suumaya Industries, and its promoters. According to the ED, these parties allegedly colluded to siphon off funds under the guise of offering benefits through a non-existent ‘Need to Feed’ program.
In a statement, the ED revealed, “The accused never received any government contract, and no such program existed. They fabricated fake records, including fake lorry receipts and invoices, to create the illusion of supplying Agro products.”
The investigation uncovered shocking financial maneuvers within the Suumaya Group. Of their transactions worth a staggering Rs 5,000 crore, only 10% were legitimate. The ED revealed that the companies involved engaged in circular transactions to inflate turnover figures artificially.
These manipulative tactics misled investors in Suumaya's listed entities, causing artificial surges in share prices. The inflated turnovers were used to enhance the valuation of startups, secure government contracts, and bid for tenders.
The ED also disclosed the involvement of stock brokers and merchant bankers, who allegedly facilitated this fraudulent scheme. Cash payments were made for commodity contracts on the NCDEX, and acquisitions of companies were orchestrated to manipulate stock market listings.
The investigation paints a picture of widespread financial malpractice, with entities collaborating to create a facade of growth and profitability. The ED’s continued efforts aim to trace and recover the laundered funds, holding the accused accountable for their role in this massive fraud.
This case serves as a stark reminder of the risks associated with unchecked financial transactions and the critical role of regulatory bodies in safeguarding public and investor interests.
