The Directorate of Enforcement (ED), Mumbai Zonal Office, has arrested Ushik Gala, Promoter of the Suumaya Group of Companies, under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. The arrest was made on 17 November 2025 following a detailed financial investigation and analysis of evidence collected during the probe. Gala has been remanded to ED custody till 24 November 2025.
Probe Originated from FIR Alleging ₹137-Crore Misappropriation
The ED initiated its investigation based on an FIR filed at Worli Police Station and later taken over by Mumbai Police’s Economic Offences Wing (EOW). The complaint involved M/s Dentsu Communications India Pvt. Ltd., M/s Suumaya Industries Ltd., and their promoters, among others.
According to the complaint, the accused entities conspired to mislead investors and partners by promising benefits under a so-called “Need to Feed Programme”, ultimately siphoning off ₹137 crore. The investigation revealed that Suumaya Group, in collusion with certain employees of Dentsu India, fabricated a fake Haryana Government contract under the same programme. This forged contract was allegedly used to obtain trade financing and divert funds through non-existent business operations.
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Bogus Billing, No Real Agro Purchases; Funds Routed Through Shell Entities
ED findings indicate that the Suumaya Group received significant funds, which were then diverted by Ushik Gala to dummy agro-trader firms in Delhi and Haryana. These entities were used merely to project false procurement of agricultural products.
However, the investigation established that no actual purchase transactions took place. Instead, the diverted funds were routed back to Gala through a combination of cash movements and RTGS entries from various shell companies. To support these fictitious transactions, the group allegedly created fake invoices, fabricated lorry receipts, and manipulated trade documents.
₹5,000-Crore Circular Transactions, Only 10% Genuine
The investigation further revealed that Suumaya Group generated circular transactions worth nearly ₹5,000 crore, of which only about 10% were genuine. The remainder existed merely on paper, designed to inflate turnover and create an illusion of large-scale operations.
Turnover Inflated from ₹210 Cr to ₹6,700 Cr; Share Prices Soared Artificially
These circular transactions significantly boosted the turnover of Suumaya’s listed entities—from ₹210 crore to ₹6,700 crore in just two years. The artificially inflated numbers also led to an abnormal rise in share prices, misleading investors into believing that the company was experiencing extraordinary growth.
According to the ED, this was a systematic and well-planned corporate fraud, aimed at manipulating financial records and portraying an exaggerated picture of business performance.
19 Locations Searched; Key Digital and Financial Evidence Seized
Earlier in the investigation, ED officials conducted search operations at 19 locations across Mumbai, Delhi, and Gurugram. These searches resulted in the seizure of significant digital evidence, financial records, documents related to fake billing, and proof of fund diversion.
Authorities stated that the seized materials contain direct evidence of money laundering, circular trading, and fraudulent business practices.
Wider Network Under Scrutiny; Further Action Likely
The ED suspects the involvement of multiple individuals, intermediaries, and associated companies in this multi-layered financial fraud. Officials indicated that, based on forensic analysis of digital records and fund flow, more arrests and deeper revelations could follow.
The agency continues to trace the ultimate beneficiaries of the diverted funds and aims to fully uncover the structure of the fraudulent trading network. Further investigation is underway.