ED Discovers Gold Bars in Mumbai & Delhi Linked to Rs 137 Crore Fraud Case
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Mumbai, Dec 12 (NationPress) The Directorate of Enforcement (ED) has confiscated gold bars totaling Rs 3.4 crore and Rs 46 lakh during extensive searches conducted at 19 locations in Mumbai, Delhi, and Gurgaon as part of their investigation into the Summaya-Dentsu case, which involves an alleged embezzlement of Rs 137 crore, according to an official statement released on Thursday.
In the recent search operations carried out by the Mumbai Zonal Office on Tuesday, various movable assets were seized, including Rs 46 lakh in cash, foreign currency equivalent to Rs 4 lakh, and gold bars valued at Rs 3.4 crore.
Additionally, other incriminating documents related to real estate transactions and digital devices were discovered and confiscated during the search operations, as noted by the official.
The ED has initiated an inquiry under the Prevention of Money Laundering Act (PMLA), 2002, based on an FIR filed by the Worli Police Station against Dentsu Communications India Private Limited, Suumaya Industries Ltd, and their promoters, among others, for allegedly misappropriating Rs 137 crore under the pretense of promising future benefits from a program called ‘Need to Feed’.
The investigation so far has uncovered that trade financing was procured from NBFCs under the guise of the ‘Need to Feed’ initiative from the Government of Haryana to distribute agricultural products.
However, it has been revealed that the accused individuals did not secure any contracts from the government, and no such program has ever existed. The implicated entities have never delivered any agricultural products for any purported program. To fabricate the illusion of supplying agricultural goods, the accused crafted false records, including fake lorry receipts and fraudulent invoices.
The search efforts have disclosed that the listed entities of the Suumaya group engaged in transactions amounting to Rs 5,000 Crore, with only 10 percent of those transactions being legitimate. These transactions were executed in a circular manner, inflating the turnover of involved entities, including Dentsu India.
Investors of the listed group entities of the Suumaya group were misled to reflect these artificially inflated transactions, which caused significant increases in share prices. The turnover of Suumaya Industries surged from Rs 210 Crore to Rs 6,700 crore within just two years, from 2019-20 to 2021-22, resulting in a dramatic rise in share price from Rs 19 per share to Rs 736 during that period.
Moreover, these circular transactions also contributed to a substantial increase in the turnover of entities competing for government contracts, startups seeking valuation, and others.
Investigations have shown that this scheme was conducted in collusion with stock brokers and merchant bankers, where cash payments were made for commodity contracts on NCDEX and for the acquisition of companies, which were subsequently listed on the stock exchange.
