Representative image 
Chennai

City firm in CBI dock for Rs 1.5K cr bank loan fraud

The Central Bureau of Investigation has started a probe against Chennai-based Surana Power Ltd in connection with an alleged bank fraud to the tune of Rs 1,495 crore. The company, admitted into insolvency last year, is now facing liquidation.

migrator

Chennai

The CBI’s Bank Security & Fraud Cell, Bengaluru has cited Gautam Raj Surana, chairman of the firm; Dinesh Chand Surana, managing director; along with two non-executive directors Shanthilal Surana and Vijyaraj Surana, all residents of Chennai as accused in the case apart from unknown public servants based on a complaint from IDBI bank, which is one of the 10 creditors. The Surana Power Ltd had allegedly defrauded a total of Rs 1,495 crore from all the 10 creditors, CBI FIR registered this week said.

Apart from cheating, the accused are booked under sections of criminal conspiracy, forgery etc. 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 on financial year starting 2009-10 to 2017-18, as part of the corporate insolvency resolution process.

The company had envisaged a 450 MW coal-based power project in Raichur, Karnataka at a cost of Rs 2,400 crore with 75 per cent loan from various banks in 2009. Of the estimated Rs 1,800 crore loan, Rs 1,495 crore was disbursed to the company over the years by various banks and financial companies.

The project got stalled after 58 per cent completion due to cost overrun and it never moved forward further.

Apart from the non-completion of the envisaged project, the company is accused of manipulation and diversion of funds received from banks.

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