ED Raids On Surana Group In Rs 3,986-Cr Bank Fraud Case

Hyderabad: The Enforcement Directorate (ED) has conducted raids for the second time on the Surana Group of Companies in connection with a massive bank fraud case. The latest operation covered Surana Industries Limited, Surana Corporation Limited, Surana Power Limited, and their associated entities and promoters under the provisions of the Prevention of Money Laundering Act (PMLA).

The searches were carried out at multiple locations including Secunderabad,Bowenpally, Jubilee Hills, and Madhapur, targeting the residences and offices of the company’s chairman, managing director, and other key figures. The ED is also investigating Sai Surya Developers, an affiliate of the Surana Group. The central agency alleges that Surana Group defrauded three public sector banks to the tune of Rs3,986 crore by defaulting on loans. The Central Bureau of Investigation (CBI) has already registered three cases in this regard. Back in February 2021, the ED seized gold and cash worth Rs11.62 crore during initial raids. Subsequently, a PMLA case was registered against Surana Group and its subsidiaries. In 2022, company MD Dinesh Chand Surana, Vijay Raj Surana, and dummy director Anand Prabhakaran were arrested. Investigations revealed that Surana used relatives and employees as proxy directors to divert loan funds into personal accounts. Further, dummy directors were appointed in tax havens such as the Cayman Islands and British Virgin Islands, where shell companies were established to launder money.