The Enforcement Directorate (ED) has provisionally attached jewellery, valuables and cash worth ₹11.62 crore belonging to various persons associated with the Chennai-based Surana Group of companies under the Prevention of Money Laundering Act (PMLA), 2002.

The order to forfeit was issued on December 26, second since the earlier issued for ₹113.32 crore, as it’s suspected that the amount was proceed of the crime committed in three cases to defraud bank of borrowing to the tune of ₹3,986 crore. The ED said it has filed prosecution complaint against the three group companies, Surana Industries Ltd , Surana Corporation Ltd and Surana Power Ltd , two of its promoters, and three other associated persons.

PMLA Special Court

A PMLA Special Court of Chennai has taken cognisance of the prosecution complaint, the ED said.

The ED stated that it initiated investigations on the basis of three FIRs the Central Bureau of Investigation (CBI), BF&SB, Bengaluru registered against Surana Industries & Others,Surana Power & others and M/s Surana Corporation& others. During the investigation, it emerged that these three companies of Surana Group have defrauded the banks by floating a web of shell entities that led to the accounts becoming non-performing asset (NPA). An amount of ₹3,986 crore, pointed out the agency, remained principal outstanding amount to the banks.

Multi-agency probe

In February 2021, the ED seized jewellery and cash during searches carried out at offices and residential premises of various promoters and officials of the Surana Group and their family members. The sleuths were able to “establish that the said jewellery and cash had been derived out of the proceeds of crime siphoned off from the borrowed fund from banks which was routed to the personal account of the promoters and their spouses through their dummy director held companies,” the ED alleged.

Further investigation is underway in the matter, the ED said. The Surana Group is facing multi-agency probe for their alleged involvement in bank fraud. The Serious Fraud Investigation Office in August arrested Dineshchand Surana, his son Rahul, and brother Vijayaraj Surana, on charges of siphoning off bank loan worth about ₹8,045 crore.

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