SC seeks response of SFIO on plea of Vijayraj Surana in financial fraud case

New Delhi: The Supreme Court on Thursday sought a response from the Serious Fraud Investigation Office on a plea of Surana Group Managing Director Vijayraj Surana seeking relaxation in bail conditions in connection with an alleged financial fraud involving over Rs 10,000 crore. The top court had on May 20 granted bail to Surana, who is facing criminal trial under provisions of the Companies Act and relevant sections of the IPC in connection with an alleged financial fraud. While granting bail, Chief Justice B R Gavai-led bench observed that prolonged detention before the commencement of trial would amount to punishment without conviction. On Thursday, the bench, also comprising Justices K Vinod Chandran and Vipul M Pancholi took note of the submissions of senior advocate C U Singh, appearing for Surana, and issued the notice to the SFIO (Serious Fraud Investigation Office) and fixed the plea after four weeks.

The counsel appearing for the SFIO opposed the plea of Surana, saying first they seek bail and then seek relaxation of conditions imposed. “Issue notice. Returnable after four weeks,” the CJI said. Earlier while granting bail, the top court had directed that Surana be released subject to the satisfaction of the Additional Sessions Judge (Special Judge for Companies Act cases), Chennai. In addition, it asked Surana to deposit his passport with the trial court, if not already done, and not leave India without the court’s permission. The bench had said the accused must not attempt to influence witnesses or delay the trial. It had said the accused must cooperate fully to ensure an expeditious disposal of the case. The bench also cautioned that any attempt to protract the proceedings could result in the cancellation of bail. Surana has been accused of being involved in a massive financial fraud unearthed by the SFIO, which alleges that the Surana Group owes approximately Rs 10,233 crore to various banks and financial institutions. The case stems from an investigation ordered by the Ministry of Corporate Affairs on March 28, 2019, leading to the registration of a case in 2023 before a special court in Chennai designated to handle offences under the Companies Act. There are several other cases as well.

Earlier both the Special Court for Companies Act cases and the Principal Sessions Court in Chennai had rejected Surana’s bail pleas, citing the magnitude of the alleged fraud and the ongoing nature of the investigation. Before the top court, the SFIO had opposed the bail plea, arguing that Surana was involved in an “enormous economic offence” involving public money worth Rs 10,000 crore, and that releasing him at this stage could impede the ongoing proceedings. However, the bench had noted that the trial had not yet commenced, despite the case involving 90 accused persons, 125 witnesses, and voluminous documentary evidence. The court observed that under such circumstances, the completion of the trial in the near future appeared unlikely. The Surana Group, a Chennai-based conglomerate with interests in energy, metals, and infrastructure, came under scrutiny following allegations of loan defaults and fund diversion. The SFIO investigation revealed that multiple group companies had collectively amassed liabilities exceeding Rs 10,000 crore to several public sector banks.