Indian Overseas Bank Fraud: ED Attaches Rs16.52 Crore Assets of Directors of Surabhi Steels, Other Group Companies
Moneylife Digital Team 13 March 2025
The Kochi office of the directorate of enforcement (ED) has provisionally attached assets worth Rs16.52 crore belonging to the directors of Surabhi Steels Pvt Ltd and its group companies. The attached assets, comprising 17 immovable properties, including land and buildings located at prime locations in Kerala, were seized under the Prevention of Money Laundering Act (PMLA), 2002.
 
ED's action is part of an ongoing investigation into a fraud case involving the Indian Overseas Bank (IOB)’s Coimbatore branch. The ED initiated the probe following a first information report (FIR) filed by the central bureau of investigation (CBI)'s anti-corruption branch (ACB) in Chennai, under various sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The FIR was registered against Surabhi Steels and its group companies, along with the company director KS Kader Pillai and his family members.
 
According to the ED, the investigation revealed that the accounts of three Surabhi group companies were not serviced with payments of principal and interest, resulting in a wrongful loss of Rs37.74 crore to IOB. 
 
The ED also found that the group had manipulated financial statements to deceive financial creditors, and funds acquired through working capital loans were diverted to other group companies. Additionally, the directors, including Mr Kader Pillai, reportedly withdrew substantial amounts from the company without settling dues to financial creditors, thereby misappropriating bank loans, the agency says.
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