Rs 137 Cr Money-Laundering case: ED Searches 19 Locations
The searches were conducted on December 10 under the Prevention of Money Laundering Act (PMLA)
Directorate of Enforcement – ED – Money Laundering case – ED raids Locations – taxscan
Directorate of Enforcement – ED – Money Laundering case – ED raids Locations – taxscan
The Directorate of Enforcement ( ED ) conducted search operations at 19 locations in Mumbai, Delhi and Gurgaon as part of an ongoing probe in the Summaya-Dentsu case. The searches were conducted on December 10 under the Prevention of Money Laundering Act ( PMLA ).
During the search operations, ED found seized Indian currency of Rs 46 Lakh, foreign currency equivalent to Rs 4 Lakh and gold bars amounting to Rs 3.4 Crore. Other incriminating documents related to immovable property transactions, digital devices have been found and seized during the search proceedings.
The agency initiated its investigation on the basis of an FIR registered by Worli Police Station against Dentsu Communications India Private Limited, Suumaya Industries Ltd and its promoters including others. They are accused of conspiring together and embezzling the funds to the tune of Rs 137 Crore under the guise of promising future 'Need to Feed program' advantages.
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As per the investigations trade financing was secured from NBFCs under the pretext of 'Need to Feed' program of the Government of Haryana to supply Agro products. Accused persons have not received any contract from the Government and there was no such program ever in existence either. The agency said that the accused had not supplied any agro-product materials for any such program, but did create "fake records including fake lorry receipts and invoices."
According to ED, after the search operations, it was revealed that listed entities of Suumaya group entered into transactions worth Rs 5000 Crore, wherein only 10 per cent of the transactions were genuine.
As per the report, the transactions were done in a circular pattern that led to an increase in turnover of involved entities including Dentsu India. Investors of the listed group entities of Suumaya group were misrepresented to show such artificially inflated transactions leading to huge spikes in share prices. Turnover of Suumaya Industries Ltd increased from Rs 210 Crore to Rs 6,700 Crore in a span of two years from FY 2019-20 to FY 2021-22.
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