The Income Tax Department has conducted coordinated searches at multiple offices of Dentsu India amid a suspected tax evasion investigation, putting the advertising and media network under renewed regulatory scrutiny.
The searches took place on September 1 across key locations, including Mumbai, Delhi, Bengaluru and other offices linked to Dentsu’s India operations. Reports suggest that access to some premises was restricted during the operation, while employees and senior management were asked to remain inside. Electronic devices and documents were also reportedly examined or taken into custody.
According to The Economic Times, the investigation relates to transactions involving an Indian subsidiary, with the Income Tax Department examining claims involving around Rs 522.8 crore in alleged goods and services-related discrepancies. Dentsu is reportedly contesting the claims and cooperating with authorities as the investigation continues.
The development comes at a significant time for Dentsu, as India continues to emerge as an important growth market for the global advertising group. The country’s expanding digital economy, strong advertising ecosystem and deep talent pool have made India strategically important for global agency networks.
The latest action also adds to Dentsu India’s history of regulatory scrutiny, following an Income Tax search in 2022, an Enforcement Directorate probe in 2024 and the Competition Commission of India’s investigation involving major advertising agencies in 2025.
With the latest investigation still developing, the immediate impact on Dentsu’s India operations and its wider growth ambitions remains to be seen.
