Bank loan fraud: ED attaches 67 windmills of Chennai company in Rs 3,986 crore money laundering case

The ED initiated a money laundering investigation on the basis of three FIRs made by the Central Bureau of Investigation against Surana Industries Limited & Others, Surana Power Limited & Others and Surana Corporation Limited & Others.

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New Delhi: The Enforcement Directorate (ED) on Tuesday provisionally attached 75 immovable properties including 67 windmills valued at Rs 113.32 crore belonging to the Chennai-based Surana Group of Companies under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with three cases of Rs 3,986 crore bank fraud. ED initiated a money laundering investigation on the basis of three FIRs made by the Central Bureau of Investigation against Surana Industries Limited & Others, Surana Power Limited & Others and Surana Corporation Limited & Others.

The investigation revealed that the three companies of Surana Group defrauded the banks by floating a web of shell companies wherein they appointed its employees as Directors, Proprietors, and Partners and indulged in paper transactions with them without actually moving the goods. 

The credit capital of the banks was layered into the personal accounts of the promoters of the company by projecting the bank funds as unsecured loans from their associate shell companies, and the same funds were then subsequently infused into the main Group Companies as part of the Promoters contribution to enhance the DP limits. 

It was also revealed during investigations that Surana Group has companies in Cayman Island as well as the British Virgin Islands in the name of dummy directors and siphoned off money to park in those companies. For the said purpose, they established four companies in Singapore and exported goods to them and the money received from them was written off in the book of accounts in India. 

Further, some of the diverted funds were used to purchase movable as well as immovable properties in the name of various unnamed companies. These actions of the officials of the Surana Group led to the accounts becoming irregular, which ultimately led to accounts becoming Non-Performing Assets, leading to an amount of Rs 3986 Crore as the Principal Outstanding amount to the banks.

Based on the investigation conducted, Shri Dinesh Chand Surana, MD of M/s Surana Industries Limited & M/s Surana Power Ltd, Shri Vijay Raj Surana, MD of M/s Surana Corporation Limited and two dummy directors of shell companies viz. Shri P Anand and Shri I Prabhakaran, were arrested on 12 July. The Hon’ble Principal Session Judge at Chennai remanded them Judicial Custody.

During the course of the investigation, it was revealed that 67 windmills of Surana Group which were being auctioned by banks to recover their dues, were again purchased in the name of the Benami company.

Based on the investigation conducted, 67 windmills with a land value of Rs 51.69 Crore and various immovable properties valued at Rs 61.63 Crore of Shri Ramlal Jain, who amalgamated the Proceeds of Crime into his regular business and totally valued at Rs 113.32 Crore were provisionally attached under the provisions of PMLA.

(With agency inputs)