ED arrests 4 in connection with the Rs.3986 crore bank fraud

CHENNAI: Enforcement Directorate arrested four persons including Dinesh Chand Surana and Vijayraj Surana of Surana Power Ltd, in connection with Rs.3986 crore bank loan fraud.

The suspects had allegedly borrowed money from different banks in the name of three companies. A sum of Rs.1301.76 crore was borrowed in the name of Surana Industrial Ltd while Rs. 1495.76 crore was taken in the name of Surana Power Corporation and another Rs.1188.56 crore borrowed under Surana Corporation, sources said here. The bankers believe that the company had misappropriated the funds, committed criminal breach of trust, and manipulated books and accounts with the help of public servants.

The fraud came to light during a forensic audit carried out in the financial year starting 2009-10 to 2017-18. The Central Bureau of Investigation had been probing the loan fraud against the company since 2019 based on complaints from banks. The ED sleuths had registered a case against the suspects and arrested them under prevention of money laundering act and produced in the court on Wednesday.

The Sessions Court here has remanded the accused till July 27. The others arrested include Anand and Prabhakaran, employees of the company.