Dentsu India is facing renewed regulatory scrutiny after the Income tax department conducted searches.

According to media reports, the searches were carried out simultaneously across its offices across the country. The reports suggest that employees at Dentsu's Mumbai office were restricted from leaving the premises, while some employees were reportedly denied entry. Personal mobile phones and laptops were also taken for examination.

Reports added that the searches are part of an investigation into suspected tax evasion. The report says the income tax department's inquiry centres on transactions involving an Indian subsidiary, with Dentsu contesting tax claims of around INR 522.8 crore relating to alleged GST.

The investigation is ongoing and details of the transactions under scrutiny have not been officially disclosed.

Manifest has written to Dentsu, and we are yet to get a response at the time of publication.

The latest action is the fourth major regulatory development involving Dentsu India in recent years.

In 2022, the Income Tax Department searched Dentsu's Mumbai office in connection with an investigation involving one of its clients. In December 2024, the enforcement directorate searched premises linked to Dentsu India as part of its investigation into an alleged INR 137 crore involving a CSR initiative. 

In March 2025, dentsu was part of a major raid conducted by the Competition Commission of India across media agencies in the country.