CHENNAI: The Directorate of Enforcement (ED) on Monday provisionally attached jewellery, valuables and cash worth Rs 11.62 crore belonging to various individuals linked to the Chennai-based Surana Group of Companies under the provisions of the Prevention of Money Laundering Act, 2002, (PMLA).
The action was taken in connection with three cases of bank fraud involving Rs 3,986 crore of principal outstanding amount to a few public sector banks.
A prosecution complaint has been filed against Surana Industries Limited, Surana Corporation Limited, Surana Power Limited, two promoters of the companies and three other associated persons, and the PMLA Special Court in Chennai has taken cognizance of the complaint.
ED initiated the investigation based on three FIRs registered by CBI, BF&SB, Bengaluru, against the three companies. An investigation showed that these companies defrauded the banks by floating a web of shell companies.
In February 2021, ED carried out searches on the official and residential premises of various promoters/officials of Surana Group and their family members and seized jewellery and cash.
During the investigation, it was established that the 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 accounts of the promoters and their spouses.