SC Seeks SFIO Reply on Surana’s Plea For Bail Relaxation

On May 20, the apex court had granted bail to Surana, who faces a criminal trial under the Companies Act and relevant provisions of the Indian Penal Code in relation to the alleged financial fraud. While granting bail, a bench led by Chief Justice of India B.R. Gavai 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 made by Senior Advocate C. U. Singh, appearing for Surana, and issued notice to the SFIO, scheduling the hearing after four weeks. The counsel representing the SFIO opposed the plea, stating that the accused had first sought bail and was now seeking relaxation of the conditions imposed. “Issue notice. Returnable after four weeks,” the CJI said.

While granting bail earlier, the top court had directed that Surana be released on conditions set by the Additional Sessions Judge (Special Judge for Companies Act cases), Chennai. It also directed him to deposit his passport with the trial court, if not already done, and to refrain from leaving India without prior court permission.

The apex court had further directed that Surana must not attempt to influence witnesses or delay the trial and must fully cooperate to ensure speedy disposal of the case. It warned that any attempt to protract proceedings could lead to cancellation of bail.

Surana is accused in a massive financial fraud unearthed by the SFIO, which alleges that the Chennai-based Surana Group owes around ₹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, which led to the registration of a case in 2023 before a special court in Chennai designated to handle offences under the Companies Act. Several related cases are also pending.

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.

The Surana Group, a Chennai-based conglomerate with interests in energy, metals, and infrastructure, came under scrutiny following allegations of large-scale loan defaults and fund diversion.