Mumbai: ED Arrests Malad Businessman Ushik Gala in ₹998 Crore ‘Need to Feed’ Money Laundering Case

Undercover Editor News | Mumbai

In a major crackdown on financial fraud linked to a Haryana government welfare programme, the Enforcement Directorate (ED) on Tuesday arrested Malad-based businessman Ushik Gala, associated with Suumaya Industries, for allegedly laundering ₹998 crore under the ‘Need to Feed’ scheme. Investigators say the massive fund diversion was masked through fake agricultural transactions, shell companies and circular layering of money.

Gala, who is also facing allegations in a ₹117 crore investor cheating case, has been remanded to ED custody till November 24 by the court.

Complaint Triggered ED Action

According to ED prosecutor Arvind Aghav, Gala’s arrest stems from a money-laundering case based on a cheating FIR filed at Worli Police Station by investor Vinay Kumar Agrawal.

Agrawal alleged that Suumaya Industries lured him into investing by showcasing a fictitious PPE and CSR contract worth ₹7,000 crore, supposedly sanctioned under Haryana’s ‘Need to Feed’ programme through Dentsu Communications India Pvt Ltd.

Based on these “assurances” and what investigators describe as a “fabricated financial picture,” Agrawal invested heavily and later suffered losses amounting to ₹117 crore.

How the Alleged Laundering Worked

The ED investigation has uncovered a large-scale, complex financial web:

1. Creation of a Special Company

Capalpha Trade Pvt Ltd (CTPL) was incorporated in February 2021, allegedly with the sole purpose of financing the ‘Need to Feed’ project.

2. Funds Passed Through Suumaya Group

 

• • Money received by CTPL was routed to Suumaya group firms.

• • Suumaya Agro Ltd then diverted funds using:

• • Fake agro purchases from dummy firms

• • Share purchases

• • Property acquisitions via companies linked to Gala

3. Diversion to Shell Firms

 

• • Remaining funds were diverted to Veda Multicorp LLP, controlled by Gala’s close associates.

4. Circular Movement of Money

 

• • Veda Multicorp transferred funds to Dentsu Communications.

• • A portion of this money was then remitted back to CTPL, suggesting circular trading to create fake turnover and justify fund movements.

Financial Spike Raised Red Flags

The ED noted an extraordinary and suspicious rise in Suumaya Industries’ financial statements:

 

• • ₹211 crore revenue in FY 2019–20

• • ₹2,450 crore revenue in FY 2020–21

• • ₹6,754 crore revenue in FY 2021–22

In FY 2021–22 alone, the company’s agri-produce segment contributed over 95% of total revenues, touching an enormous ₹12,270 crore — a jump investigators believe was artificially inflated.

What’s Next?

With Gala now in custody, ED is expected to confront him with evidence regarding:

 

• • Circular fund transactions

• • Dummy companies

• • Fake agricultural purchases

• • Overseas remittances shown as “advance against imports”

• • Discrepancies in company financials

The arrest marks one of the most significant developments yet in the ‘Need to Feed’ money laundering probe, with ED officials indicating more arrests and deeper financial scrutiny are likely.