Amid ED action, Dentsu says activity limited to the InDeed business only

Following news of the Directorate of Enforcement (ED), Mumbai Zonal Office, conducting search operations on December 10, 2024, under the Prevention of Money Laundering Act (PMLA), 2002 at 19 locations in Mumbai, Delhi and Gurgaon as part of an ongoing probe in Summaya-Dentsu case, Dentsu, in a statement issued, clarified that this activity was limited to the InDeed business only.

In a press statement issued, ED said, “During the course of search operations, movable assets, that is, Indian currency of Rs 46 Lakh, foreign currency equivalent to Rs 4 Lakh and gold bars amounting to Rs 3.4 crore have been seized.”

ED further added, “ED investigation so far has revealed that 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 Government and there was no such program ever in existence either...The search operations have revealed that the listed entities of Suumaya group entered into transactions worth Rs 5,000 crore, wherein only 10 per cent of the transactions were genuine.”

In its statement issued, Dentsu stated, “In 2021, we identified suspected fraudulent activity conducted by third parties and some of InDeed’s former employees against whom criminal complaints have also been filed. This activity was limited to the InDeed business only. Three years ago, we proactively reported the matter to the relevant authorities and have been fully co-operating since. It is in connection with the same matter that the Enforcement Directorate (ED) visited Dentsu India’s office in Mumbai on December 10, 2024. The ED has not found or seized any properties from Dentsu’s premises. We take fraud and wrong-doing very seriously with a zero-tolerance policy towards any such behaviour. We will continue to co-operate with the authorities.”

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