# In the matter of Dinesh Chand Surana vs. The Assistant Director Directorate of Enforcement Government of India

> HC judgment dated 2024-03-28. Citation: TCN-2024-HC-00110. The case involves a criminal original petition filed by Dinesh Chand Surana, the first accused in…

- **Court:** HC
- **Order date:** 28 Mar 2024
- **Citation:** TCN-2024-HC-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/dinesh-chand-surana-vs-the-assistant-director-directorate-of-enforcement-governm-4ea06890

## Summary

### Background

The case involves a criminal original petition filed by Dinesh Chand Surana, the first accused in Spl C.C.No. 11 of 2022, pending before the Principal Sessions Court at Chennai (Special Court, PMLA). Surana seeks bail after being remanded to custody on 13.07.2022 in ECIR Nos. CEZO-I/37/2020 for offenses under Sections 3 & 4 of the Prevention of Money Laundering Act, 2002. The prosecution alleges that Surana, as the Managing Director of Surana Power Ltd. (SPL), caused a loss of Rs.1,495.76 crores to banks. SPL, a fully owned subsidiary of Surana Industries Ltd. (SIL), is under liquidation due to orders from the National Company Law Tribunal, Chennai. SPL had borrowed funds from a consortium of ten banks led by IDBI bank Ltd for a power plant project that never

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## Facts

Dinesh Chand Surana, the Managing Director of Surana Power Ltd. (SPL) and Surana Industries Ltd. (SIL), sought bail after being arrested on 12.07.2022 and remanded to judicial custody on 13.07.2022 in connection with a case involving alleged money laundering. SPL, a subsidiary of SIL, had borrowed Rs.1,495.76 crores from a consortium of banks led by IDBI bank Ltd for a 2x210 MW power plant project in Raichur, Karnataka, which never commenced, leading to the account being declared NPA. The prosecution alleges that SPL awarded contracts to entities controlled by Surana, incorporated shell companies for paper transactions, and diverted funds to Surana Mines and Minerals in Singapore without acquiring coal mines. The respondent claims that Surana misappropriated credit

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## Issues and analysis

### Issue 1: Whether the petitioner, Dinesh Chand Surana, is entitled to bail considering the allegations of …

**Ratio:** Section 45 of the PMLA imposes stringent conditions for granting bail, requiring the

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**Reasoning:** The court reasoned that the allegations against the petitioner, including the diversion

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**Interpretation:** Section 45 of the PMLA is interpreted as imposing a dual burden on the accused

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**Application:** The court applied the ratio of Section 45 of the PMLA and the precedent set in

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## Parties

- **Judges:** C.V.Karth…
- **Appellants:** Dinesh Chand…
- **Respondents:** Surana Power Ltd.…; The Assistant…

## Timeline

- **2022-07-12 — Arrest of Pet…**: Dinesh Chand Surana was…
- **2022-07-13 — Remand to Judicial…**: Dinesh Chand Surana was remanded to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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