ED attaches assets worth Rs 113 cr from Surana Group of Companies

The Enforcement Directorate (ED) has provisionally seized 75 real estate properties, including 67 windmills worth Rs 113.32 crore belonging to the Chennai-based Surana group of companies, on charges of money laundering in in connection with three bank fraud cases involving Rs 3,986 crore of unpaid principal to public sector banks.

The ED initiated a money laundering investigation based on three FIRs filed by CBI against Surana Industries Limited and others, Surana Power Limited and others in addition to Surana Corporation Limited and others.

The investigation revealed that these three Surana Group companies defrauded the banks by creating a network of fictitious companies in which they named their employees/relatives as directors/owners/partners and engaged in paper transactions with them without real movement of goods.

The credit capital of the banks was transferred/deposited into the personal accounts of the company promoters by projecting the bank funds as unsecured loans from their associated shell companies and the same funds were then infused into the main companies of the group as part of the sponsors’ contribution to improve the DP limits. The investigation also revealed that the Surana Group owns companies in the Cayman Islands as well as the British Virgin Islands in the name of dummy directors and has embezzled money to park in these companies. For this purpose, they set up four companies in Singapore and exported goods to them and the money due from them was written off in the account book in India. In addition, some of the embezzled funds were used to purchase movable/immovable property in the name of various Benami individuals/companies.

These actions by the Surana Group promoters/officials caused the accounts to become irregular, which eventually led to the accounts being turned into NPAs and an amount of Rs 3986 crore as unpaid to the banks.

Based on the investigation, Dinesh Chand Surana, MD of Surana Industries Limited & Surana Power Ltd, Vijay Raj Surana, MD of Surana Corporation Limited and two dummy directors of fictitious companies – P Anand and I Prabhakaran, were arrested on 12 July and the main session The Chennai judge remanded them into custody. Up to 67 windmills with land worth Rs 51.69 crore and various real estate properties valued at Rs 61.63 crore from Ramlal Jain, who merged “proceeds of crime” into his regular business, Total assets valued at Rs 113.32 crore have been provisionally tied under the Prevention of Money Laundering Act (PMLA).

Meanwhile, the ED has provisionally attached immovable property to the tune of Rs. 3.35 crores in the case of CG Gowramma, formerly – Corporator (Azad Nagar), Bangalore in A Disproportionate Asset.

The ED has opened a money laundering investigation based on an indictment filed by Karnataka Lokayukta Police, Bengaluru against Gowramma and her husband C Govindraju in a corruption case.