The Enforcement Directorate (ED) conducted raids at the Dentsu India office in Mumbai on 10 December 2024. 

According to a release shared by the ED raids were conducted in Mumbai, Delhi, and Gurugram across several offices.

Manifest has learnt that along with Dentsu, there are other vendors and agencies also involved in the case.

The raids brought to light significant evidence, including INR 46 lakh in Indian currency, foreign currency worth INR 4 lakh, and gold bars valued at INR 3.4 crore. However, dentsu's statement clarified that this wasn't recovered from the agency's office.

The case revolves around allegations of misappropriating INR 137 crore under the pretence of a CSR initiative called the 'Need to Feed' program.

Dentsu’s CSR advisory arm, InDeed, established in 2017, was reportedly collaborating with Suumaya Industries on this initiative during the pandemic. However, discrepancies in financial filings led to the registration of an FIR by Worli Police in March 2022, triggering the ED’s probe. 

The ED investigation revealed that no such program ever existed. Instead, the accused fabricated records, including fake invoices and lorry receipts, to falsely portray the supply of agricultural products. Funds were secured from non-banking financial companies under the guise of this fictitious government program.

Further scrutiny uncovered circular trading practices used to inflate Suumaya Industries’ turnover from INR 210 crore in FY 2019-20 to INR 6,700 crore by FY 2021-22.

The investigation revealed the involvement of stockbrokers, merchant bankers, and other entities who facilitated the circular transactions. Cash payments were allegedly made for commodity contracts on NCDEX and for acquiring companies later listed on the stock exchange.

The ED’s probe aims to trace the flow of embezzled funds and identify those responsible for orchestrating the fraudulent scheme. The materials seized during the raids are expected to lead to further inquiries.

Dentsu Communications India has issued a statement acknowledging the ED’s visit to its Mumbai office, affirming its cooperation with the authorities. The statement revealed that Dentsu had acted on this and had asked those involved in the case to leave the agency and also shut down InDeed.

Responding to the ED’s actions, Dentsu India released a statement. It read, "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 cooperating 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 wrongdoing very seriously with a zero-tolerance policy towards any such behaviour. We will continue to cooperate with the authorities."