ED Provisions Attachment of Rs. 16.52 Crore Worth Assets in Kerala-Tamil Nadu Fraud Case.
Kochi:
The Directorate of Enforcement (ED), Kochi, has provisionally attached assets worth approximately Rs. 16.52 Crore belonging to the directors of M/s. Surabhi Steels Private Limited and its associated companies, located in Palakkad, Kerala, and Coimbatore, Tamil Nadu. The action was taken under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation into a fraud case involving the Indian Overseas Bank, Coimbatore Branch.
The attached assets include 17 immovable properties, consisting of land and buildings situated in prime locations across Kerala, valued at around Rs. 16.52 Crore. These properties belong to the directors of Surabhi Steels and its group companies, which were allegedly involved in defrauding the bank and causing a financial loss.
The ED initiated the investigation based on a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI), Anti-Corruption Branch (ACB), Chennai. The FIR was registered against Surabhi Steels Private Limited, its group companies, and its directors, including K. S. Kader Pillai and his family members, all residents of Ernakulam, Kerala. The charges are based on various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988.
According to the ED’s findings, the accounts of three companies under the Surabhi Group, represented by its directors, failed to service the payment of principal and interest, leading to substantial losses for the Indian Overseas Bank. The total fraudulent loss incurred by the bank was approximately Rs. 37.74 Crore.
The investigation revealed that the directors had manipulated financial statements with the intention of defrauding the financial creditors. Furthermore, the working capital loan obtained from the bank was allegedly diverted to other group companies. K. S. Kader Pillai and his family members, who served as directors of the Surabhi Group, were found to have withdrawn significant amounts of money from the company without settling the dues owed to financial creditors. This misappropriation of bank loans further contributed to the financial mismanagement and fraudulent activities.
The ED’s investigation is still ongoing, and further action is expected in the coming days as the probe into the fraud case continues.
