ED Attaches Assets Worth Rs. 16.52 Crore in Surabhi Steels Fraud Case.
12 March 2025
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 group companies, located in Palakkad (Kerala) and Coimbatore (Tamil Nadu). This action is part of an ongoing investigation into a fraud case linked to the Indian Overseas Bank, Coimbatore Branch. The assets, including 17 immovable properties, have been seized under the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated after the CBI, Chennai, registered an FIR against M/s. Surabhi Steels and its directors, K. S. Kader Pillai and his family, under various sections of the IPC and the Prevention of Corruption Act, 1988. ED found that the group had defrauded the bank by failing to service loans, resulting in a loss of Rs. 37.74 Crore. The borrower companies misrepresented their financial statements to deceive the bank, diverting working capital loans to group companies. The directors, including Kader Pillai and his family members, withdrew substantial amounts from the company before settling debts, resulting in misappropriation of bank loans. Investigations are still ongoing.