In accordance with the Prevention of Money Laundering Act of 2002, the Enforcement Directorate (ED) has temporarily attached jewellery, valuables, and cash worth Rs. 11.62 crore that belonged to various individuals connected to the Chennai-based Surana Group of Companies. This relates to three instances of bank fraud involving a total principal balance owed to public sector banks of Rs 3,986 crore.
The three group companies, Surana Industries Ltd, Surana Corporation Ltd, and Surana Power Ltd, along with two of its promoters and three other connected parties, have allegedly been named in a prosecution complaint filed by the ED. The prosecution complaint has been acknowledged by a special PMLA court in Chennai.
The Central Bureau of Investigation (CBI), BF&SB, Bengaluru filed three FIRs against Surana Industries and Others, Surana Power & Others, and M/s Surana Corporation & Others. According to the ED, these FIRs served as the foundation for the investigations that it had begun. The Surana Group’s three companies were found to have defrauded the banks by setting up a web of shell companies, which caused the accounts to become non-performing assets (NPA). The agency reported that there was still principal owed to the banks in the amount of Rs. 13,986 crore.