ED Attaches Rs 35 Crore Assets in Suumaya Group Money Laundering Case
The Enforcement Directorate has taken strong action against the Suumaya Group. They have provisionally attached properties worth Rs 35 crore in a major money laundering investigation. This move comes after the agency arrested the group's promoter, Ushik Gala, last year.
Details of the Attached Properties
The attached assets include both movable and immovable properties. The movable assets consist of bank balances, Demat holdings, and mutual funds. The ED also attached two immovable properties as part of this action.
Background of the Case
The case originated from a complaint filed by Vinaykumar Agarwal of Capalpha Trade Private Limited. He approached the Worli police station with serious allegations. The complaint stated that Ushik Mahesh Gala and his associates conspired to cheat and misappropriate funds.
They allegedly induced CTPL to finance their business scheme called "Need to Feed." This scheme was presented as a mid-day meal program. However, investigators found it to be completely fictitious.
How the Fraud Operated
The ED investigation revealed a complex web of deception. The Suumaya group and its associates created a bogus contract. They claimed it was from the Haryana government under the "Need to Feed" programme.
This fake contract helped them obtain funds and trade financing. They used it to convert and project non-existent business operations as genuine turnover. The scheme was elaborate and carefully planned.
Money Diversion Tactics
Funds received by Suumaya group entities followed a suspicious path. Ushik Gala diverted these funds to Delhi and Haryana-based dummy agro trader entities. He used an agent to facilitate these transfers.
The purpose was to falsely depict genuine procurement activities. In reality, no actual agro purchases ever took place. The diverted funds simply circled back to Ushik Gala through various channels.
These channels included cash transactions and RTGS entries from other shell entities. The entire operation was designed to create an illusion of legitimate business activity.
Creation of Fake Documents
Investigators discovered that Suumaya created numerous fake documents. They produced fake invoices and lorry receipts to simulate large volumes of trade. These documents supported circular transactions amounting to Rs 5,000 crore.
Only about 10% of these transactions were genuine. The rest were part of a circular pattern designed to inflate numbers. This pattern artificially increased the turnover of the involved entities.
Impact on Company Performance
The inflated transactions had dramatic effects on Suumaya's financial appearance. The company's turnover jumped from Rs 210 crore to Rs 6,700 crore in just two years. This artificial boost was entirely due to the circular transactions.
The company's share price soared astronomically as a result. This created a misleading picture for investors in its listed group entities. People invested based on false information about the company's performance.
Ongoing Investigation
The Enforcement Directorate continues to investigate this complex case. They are examining all aspects of the money laundering operation. More developments are expected as the probe progresses.
The attachment of Rs 35 crore worth of properties represents a significant step in this investigation. It demonstrates the agency's commitment to tackling financial crimes of this magnitude.
