ED Attaches Assets Worth Rs. 16.52 Crore in Connection with Indian Overseas Bank Fraud Case
(Judicial Quest News Network)
Kochi,12, March, 2025. In a major development, the Directorate of Enforcement (ED) in 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 group companies. These assets, including 17 immovable properties, are located in prime areas across Kerala and Tamil Nadu, particularly in Palakkad (Kerala) and Coimbatore (Tamil Nadu). The attachment comes under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation into the fraud case at the Indian Overseas Bank, Coimbatore Branch.
The ED’s action follows an FIR filed by the Central Bureau of Investigation (CBI), Anti-Corruption Branch (ACB), Chennai, against the Surabhi Steels group companies and their directors, including K.S. Kader Pillai and his family members, residents of Ernakulam, Kerala. The charges against them are based on various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988.
The ED’s probe revealed a detailed pattern of financial mismanagement and fraud involving the Surabhi Steels Group. Three companies under the Surabhi Group were found to have defaulted on loan repayments, with no servicing of either the principal or interest amounts. As a result, the Indian Overseas Bank faced a significant loss of Rs. 37.74 crore. The investigation uncovered that the accused parties deliberately fudged financial statements in order to defraud the bank and misappropriate funds.
Further investigation disclosed that the working capital loans, which were meant for the legitimate business purposes of the company, were diverted to the group companies. Moreover, K.S. Kader Pillai and his family members, who served as directors, took substantial sums of money from the company. However, instead of settling the dues to financial creditors, they used the funds for their personal benefit, further aggravating the fraud.
The ED’s investigation is still ongoing, and authorities are continuing to gather evidence in the case to ensure that the culprits are brought to justice. This action marks a significant step in the fight against financial misconduct and corporate fraud in India.
