New Delhi: The Supreme Court of India on Thursday sought a response from the Serious Fraud Investigation Office (SFIO) regarding a plea filed by Vijayraj Surana, Managing Director of the Surana Group, seeking relaxation of conditions imposed on his bail in connection with a massive financial fraud case involving over ₹10,000 crore.

The case, which has been under investigation by the SFIO, concerns alleged financial irregularities by the Surana Group, a Chennai-based conglomerate with interests in energy, metals, and infrastructure, which owes approximately ₹10,233 crore to various banks and financial institutions. The matter stems from an investigation initiated by the Ministry of Corporate Affairs on March 28, 2019, eventually leading to the registration of cases in 2023 before a special court in Chennai designated to handle offences under the Companies Act.

Background of Bail and Legal Proceedings

Surana had earlier approached the Supreme Court for bail after the Special Court for Companies Act cases and the Principal Sessions Court, Chennai, had rejected his plea, citing the magnitude of the alleged fraud and ongoing investigations. On May 20, 2025, a bench led by Chief Justice B R Gavai, along with Justices K Vinod Chandran and Vipul M Pancholi, granted bail to Surana while emphasizing that prolonged pre-trial detention would amount to punishment without conviction.

The bail conditions imposed included:

• Depositing his passport with the trial court (if not already done)
• Not leaving India without prior court permission
• Cooperating fully with the investigation and trial
• Not influencing witnesses or attempting to delay proceedings

The Supreme Court had also cautioned that any attempt to protract the trial could result in the cancellation of bail.

Surana’s Current Plea

In the hearing on Thursday, senior advocate C U Singh, representing Surana, requested relaxation of certain bail conditions. While taking note of the submissions, the bench directed that the SFIO be served notice and fixed the matter for hearing after four weeks.

The counsel appearing for the SFIO opposed the plea, noting that Surana had first sought bail and only now was requesting modifications to the conditions imposed. The bench responded, stating, “Issue notice. Returnable after four weeks,” signaling that the SFIO must formally respond before the court considers any relaxation.

Magnitude and Complexity of the Case

The alleged fraud is considered one of the largest financial crimes in recent years, involving public money worth over ₹10,000 crore. According to SFIO findings, multiple companies within the Surana Group had allegedly defaulted on loans and diverted funds, leading to massive liabilities to public sector banks. The investigation identified 90 accused persons, 125 witnesses, and voluminous documentary evidence, highlighting the case’s complexity and scale.

Despite the gravity of the allegations, the Supreme Court had previously noted that the trial had not yet commenced, making long-term pre-trial detention unreasonable under the law. The court observed that given the size and complexity of the proceedings, completion of the trial in the near future appeared unlikely, which formed a key reason for granting Surana bail.

Next Steps

The matter is now scheduled for hearing after four weeks, following the SFIO’s submission of a response to Surana’s plea for modification of his bail conditions. Legal experts note that the decision will likely set a precedent on how bail conditions can be modified in large-scale economic offence cases involving complex corporate structures and multiple accused individuals.

The Surana Group’s ongoing cases continue to attract significant attention due to their economic and public interest implications, as they involve alleged mismanagement of massive loans from public sector banks and potential diversion of funds across multiple group companies.

---