Dentsu India and Suumaya Group Under ED Investigation for Alleged Rs 137 Crore Fraud

Dentsu India is under investigation by the Enforcement Directorate (ED) for a suspected fraud involving third parties and former employees. The ED's raids, linked to the 'Suumaya-Dentsu case,' uncovered a Rs 137 crore funds embezzlement scheme involving fake transactions and inflated share prices.

Dentsu India has confirmed its involvement in an ongoing Enforcement Directorate (ED) investigation concerning a suspected fraud reported to authorities in 2021. The case, known as the 'Suumaya-Dentsu case,' has drawn ED's attention to Dentsu and Suumaya Industries Ltd for alleged money laundering activities.

The ED conducted searches across multiple locations in India, discovering Rs 50 lakh in cash and gold worth Rs 3.4 crore. The probe revealed fraudulent 'Need to Feed' program claims, bogus trade financing, and circular transactions totaling Rs 5,000 crore, aiming to artificially boost company turnovers.

False records, inflated share prices, and non-existent government programs were central to the scam, which saw Suumaya's revenue soar from Rs 210 crore to Rs 6,700 crore. Dentsu India maintains no properties were seized, asserting its zero-tolerance approach to fraud and continued cooperation with the investigation.

(With inputs from agencies.)