ED Seizes ₹35.22 Crore in Money Laundering Case Involving Sumaya Group

The Enforcement Directorate has taken significant action against the Sumaya Group, seizing assets worth ₹35.22 crore as part of a money laundering investigation. The case involves allegations of embezzlement and fraudulent contracts with the Haryana government. The ED's findings reveal a complex scheme where fake business activities were presented as legitimate, leading to substantial financial misrepresentation. This investigation highlights the ongoing efforts to combat financial fraud and protect investors from deceptive practices. Read on to discover more about the details of this case and its implications.

By Narendra Chaudhary Jan 14, 2026, 15:47 IST

ED's Action Against Sumaya Group

The Enforcement Directorate (ED) announced on Wednesday that it has confiscated assets worth ₹35.22 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Sumaya Group and others. These assets include both movable and immovable properties, such as bank balances, demat holdings, and mutual fund investments, along with two real estate properties.

The ED's regional office in Mumbai initiated an investigation based on a First Information Report (FIR) filed by the Worli police station against Sumaya Industries Limited and its promoters, among other individuals and entities, under various provisions of the Indian Penal Code (IPC), 1860.

They are accused of embezzling ₹137 crore by promising benefits from a 'Need to Feed' program and conspiring to defraud.

Details of the Investigation

The investigation by the ED has revealed that the Sumaya Group and its associates created a fake contract with the Haryana government under the guise of the 'Need to Feed' program to secure funds and business financing. This allowed them to present non-existent business activities as legitimate operations.

According to an ED statement, the funds obtained by the Sumaya Group's entities were transferred to fictitious agricultural trading firms in Delhi and Haryana through an agent named Ushik Gala, thereby misrepresenting actual purchases.

No genuine agricultural purchases took place; instead, the embezzled funds were returned to Ushik Gala through cash and RTGS transactions from other fraudulent entities. To create an illusion of substantial business, Sumaya generated fake invoices and truck receipts, leading to circular transactions worth ₹5,000 crore, of which only about 10 percent were real. These circular transactions artificially inflated the group's business from ₹210 crore to ₹6,700 crore over two years, misleading investors about the performance of the listed group entities.