Mumbai: Malad-Based Businessman Arrested By ED In ₹998 Crore 'Need To Feed' Money Laundering Case

Mumbai: The Enforcement Directorate on Tuesday arrested Malad-based businessman Ushik Gala of Suumaya Industries for money laundering under the Haryana government’s ‘Need to Feed’ scheme. The agency suspects that funds amounting to Rs 998 crore were remitted out of the country under the guise of advance against import.

ED prosecutor Arvind Aghav informed the court that Gala was arrested in connection with the money-laundering case registered on the basis of a cheating case filed with Worli police station by Vinay Kumar Agrawal, who claimed he was induced to invest with Gala’s firm and suffered a loss of Rs 117 crore. Gala has been remanded to ED custody till November 24. The investigation revealed that the complainant was approached by Suumaya’s CFO, who claimed they had received a PPE CSR contract of Rs 7000 crore from M/s Dentsu Communications India Private Limited, which was allegedly awarded a Haryana government contract under the NEED TO FEED scheme, similar to a mid-day meal model.

Based on the assurances and the “rosy picture” created of the firm, Agarwal invested with Suumaya. The ED probe found a circular pattern of fund movement. It claimed that Capalpha Trade Pvt Ltd (CTPL) was incorporated on February 19, 2021, specifically to finance the programme. Funds received by CTPL were advanced to Suumaya group companies. Suumaya Agro Ltd allegedly diverted funds under the guise of purchase of agro products from dummy entities, purchase of shares of listed companies and immovable properties through Gala’s own company.

Remaining funds were transferred to Veda Multicorp LLP, controlled by Gala through close associates. Veda Multicorp transferred funds to Dentsu Communications, which remitted a portion back to CTPL, indicating circular trading. The ED noted a sudden surge in Suumaya Industries’ financials: from Rs 211 crore in FY 2019-20 to Rs 2,450 crore in FY 2020-21 and Rs 6,754 crore in FY 2021-22. In FY 2021-22, the agri produce segment accounted for over 95% of consolidated revenues, reaching Rs 12,270 crore.

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