In a PMLA case, the ED has attached assets worth Rs 11.62 crore belonging to Chennai’s ‘Surana Group’ for defrauding banks.
On December 26, 2022, the Enforcement Directorate (ED) provisionally attached jewelry/valuables and cash worth Rs 11.62 Crore belonging to the various persons linked to Chennai-based Surana Group of Companies, in three cases of Bank Fraud involving Rs 3986 Crore of Principal Outstanding Amount, payable to the Public Sector Banks. This action was taken in accordance with the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
A prosecution complaint has also been filed against the three Group Companies, namely M/s Surana Industries Limited, M/s Surana Corporation Limited, and M/s Surana Power Limited, as well as two of the companies’ promoters and three other associated persons. The Prosecution Complaint has been heard by the Hon’ble PMLA Special Court in Chennai.
The ED launched an investigation based on three FIRs filed by the Central Bureau of Investigation, BF&SB, Bengaluru, against M/s Surana Industries Limited & Others, M/s Surana Power Limited & Others, and M/s Surana Corporation Limited & Others.
The investigation conducted by the ED has so far revealed that these three companies of the Surana Group have defrauded the banks by floating a web of shell companies. This resulted in the accounts becoming non-performing assets, and an amount of Rs 3986 Crore remained as the Principal Outstanding amount payable to various banks.
In February of 2021, the ED carried out search operations at the official and residential premises of numerous promoters and officials of the Surana Group, as well as members of their families, and seized jewelries and cash from such premises.
During the course of the investigation conducted by the ED, it was determined that the aforementioned jewelries and cash had been obtained through the crime proceeds of the subject PMLA case. More specifically, it was determined that the money used to purchase these items had been syphoned off from money that had been borrowed from banks and then transferred to the personal accounts of the promoters and their spouses via their dummy director held companies.
In this case a PAO had been issued earlier for Rs.113.32 Crore. Further Investigation is underway in the matter.