Dentsu was whistle-blower in ED’s Rs 998-cr probe against Suumaya: Sources

A day after e4m reported that the Enforcement Directorate (ED) had brought the Japanese ad major Dentsu’s India operations under scrutiny, fresh information indicates that the advertising giant may, in fact, have been the whistle-blower in the Suumaya Industries case.

According to multiple sources familiar with the matter, Dentsu Communications India played a pivotal role in alerting authorities during the ED’s investigation into Suumaya Industries. The development comes even as the agency arrested Suumaya promoter on Thursday for allegedly laundering ₹998 crore linked to Haryana’s so-called Need to Feed scheme.

Notably, this is not the first time Dentsu has flagged sectoral irregularities. The network was also a key whistle-blower in the CCI investigation into advertising agencies and the Indian Society of Advertisers (ISA), which led to raids across five major agencies and the ISA office.

The ongoing ED probe revolves around complex fund movements. Investigators allege that Suumaya channelled money through shell and associated entities, transferring large sums to Veda Multicorp LLP, which then routed funds back to Suumaya-linked companies — creating a layered, circular flow.

While some media reports suggest that the ED views Dentsu’s role — through its CSR consultancy InDeed (shut down in 2021) — as that of a facilitator in the flow of funds, sources insist the group was the first to raise red flags.

In fact, in a statement shared with e4m on Friday, just hours after the initial report, Dentsu reiterated that it had detected “suspected fraudulent activity conducted by third parties and some former employees” in 2021, specifically around the InDeed business, and had proactively reported the matter to authorities.

The company added that it maintains a zero-tolerance policy toward fraud and has been cooperating fully with regulators since the issue first came to light.