The Enforcement Directorate (ED) has arrested Ushik Gala, businessman and managing director of Suumaya Industries Ltd, in connection with a money laundering probe involving the alleged misappropriation of Rs137.05 crore. The funds were reportedly obtained under the pretext of financing a fictitious business scheme tied to the government’s mid-day meal programme.
According to the ED’s Mumbai unit, the scheme, named “Need to Feed”, was a sham designed to create the appearance of legitimate business activity while diverting and integrating funds from the complainant firm. Gala and his associates allegedly failed to repay the borrowed funds, resulting in losses amounting to Rs137.05 crore, including accumulated interest.
The case originated from an FIR registered by the Worli police on February 12, 2022, following a complaint that Gala and his collaborators had misled the firm into financing the non-existent scheme. The ED stated that between March and August 2021, the complainant firm transferred approximately Rs325.98 crore to Suumaya Industries, of which Rs117.73 crore, along with Rs19.31 crore in interest, was ultimately misappropriated.
Investigators revealed that Gala, in collusion with Saahil Arora of Dentsu and partners of Veda Multicorp LLP, used fake documents and staged events to convince the complainant firm to finance the non-existent supply of dry rations. The funds were allegedly routed through shell entities and bogus invoices were generated to mask the transactions.
The ED also noted that suspects had falsely claimed government contracts under the “Need to Feed” programme and promoted the scheme on social media, citing forged letters from officials to gain credibility.
As part of the investigation, the ED seized movable assets worth ₹Rs3.9 crore in December 2024 during searches conducted in Mumbai, Delhi, and Gurgaon. Gala and four of his accomplices were remanded in ED custody until November 24 for further interrogation.
The case underscores the growing complexity of corporate financial frauds and highlights the enforcement agencies’ continued efforts to tackle large-scale economic offences.
