ED provisionally attaches properties of various persons linked to Chennai-based Surana Group of Companies

The ED had earlier attached properties valued at ₹124.95 crore (approx.). Now, the total attachment in the case stands at ₹248.98 crore

The Directorate of Enforcement (ED) has provisionally attached 78 immovable properties and 16 movable properties valued at ₹124 crore (approximately) in the possession of various persons and entities linked to the Chennai-based Surana Group of Companies under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in connection with three cases of bank fraud involving ₹3,986 crore of principal outstanding amount to the public sector banks.

The ED had earlier attached properties valued at ₹124.95 crore (approx.). Now, the total attachment in the case stands at ₹248.98 crore. The ED initiated money laundering investigation on the basis of three FIRs by Central Bureau of Investigation, BF&SB, Bengaluru registered against Surana Industries Limited & others, Surana Power Limited & others and Surana Corporation Limited & others.

Investigations by ED have revealed that these three companies of Surana Group have defrauded the banks by floating a web of shell companies wherein they appointed its employees and relatives as directors, proprietors and partners and indulged in paper transactions with them without actual movement of goods, the credit capital of the banks were round tripped/ layered to the personal accounts of the promoters of the company by projecting the bank funds as unsecured loans from their associate shell companies and same funds were then subsequently infused in the main group companies as part of the promoters contribution to enhance the drawing power limits.

Further, some of the diverted funds were used to purchase movable and immovables properties in the names of various benami persons and companies. These actions of the promoters and officials of the Surana Group led to the accounts becoming irregular which ultimately led to accounts becoming NPA.

Based on the investigations conducted, Dinesh Chand Surana, MD of Surana Industries Limited & Surana Power Ltd, Vijay Raj Surana, MD of Surana Corporation Limited and two dummy directors of shell companies viz. P. Anand and I Prabhakaran, were arrested in July 2022 and later sent to judicial custody. The prosecution complaints were filed before the special court, PMLA. Further investigation is underway in the matter.