SFIO makes 2 more arrests in Rs 8,045 crore bank fraud case

CHENNAI: More than two weeks after arresting Rahul Surana - a member of Surana business group family - sleuths from Serious Fraud Investigation Office (SFIO) in Chennai, arrested his father Dinesh Chand Surana and paternal uncle Viajayraj Surnana in connection with the same case.

They were arrested for aggregate loan exposure of nearly Rs.8045 crore.

Dinesh Chand Surana and Vijayraj Surana were lodged in Puzhal jail after being arrested by Enforcement Directorate and the arrest by SFIO was informed to them.

The arrest of the two came after three days of custodial interrogation of Rahul Surana by SFIO investigators.

Rahul Surana is currently the owner of Madras Super Store. He was also the CEO of Surana Group and senior vice president of Surana Power Ltd.

All the three were arrested by SFIO in connection with siphoning of bank borrowing pertaining to Surana group of companies sources said.

The Surana group of companies consists of Surana Industries Limited, Surana Corporation Limited and Surana Power Limited. These companies were listed in stock exchanges and have once carried out flourishing trade in gold and steel. Surana Corporation was once the largest importer of gold in the Tamil Nadu. These companies have made bank borrowings to the extent over Rs 8,045 crore which remained unpaid and public sector banks have lost the huge amount, the company had borrowed and later siphoned off during the last decade. SFIO after conducting investigation have initially arrested Rahul Surana and later his father and uncle based on the evidence of diversion and siphoning off bank loans into his other ventures.

It may be noted that in the middle July this year ED had arrested 4 persons, including Dinesh Chand Surana and uncle Viajayraj Surana in connection with the bank fraud cases involving more than Rs 3,986 crore.