ED conducts 7 searches in city in ₹50 cr loan case against PSE officials, private firm

ED conducted searches in Mumbai and Haryana linked to BECIL's ₹50 crore loan fraud involving TGBL. Key figures arrested in the investigation.

MUMBAI: The Enforcement Directorate (ED) on Wednesday conducted searches at seven premises in Mumbai, one in Haryana’s Faridabad, as part of its money laundering probe into Broadcast Engineering Consultants India Limited’s (BECIL) alleged fraudulent disbursal of a ₹50 crore loan to the Green Billions Limited (TGBL), a private firm. The ED’s case was based on a Central Bureau of Investigation’s (CBI) 2024 case.

ED conducts 7 searches in city in ₹50 cr loan case against PSE officials, private firm

Central Bureau of Investigation (CBI) on September 3, 2024, registered a case based on the findings of its preliminary enquiry ( PE) probe, which had been initiated based on a complaint from the vigilance authorities of the Information and Broadcasting ministry, under which BECIL functions. The FIR said the Indian Renewable Energy Development Agency Limited (IREDA), a public sector company, had sanctioned a loan of ₹80 crore to BECIL for execution of projects related to waste management / LED smart lighting/ smart metering and other projects in Pune through contractors.

According to the CBI, there was alleged a criminal conspiracy in 2022, wherein a TGBL’s promoter paid a bribe of ₹3 crore to George Kuruvilla, the then chairman and managing director (CMD) of BECIL to disburse ₹50 crore loan. The loan was allegedly disbursed without genuine security, in violation of standard operating procedures, ED officials said.

The CBI had booked George Kuruvilla, the then BECIL Chairman and Managing Director (CMD), WB Prasad, BECIL’s general manager, and others under relevant sections of the Bharatiya Nyaya Sanhita and Prevention of Corruption (PC) Act. Prateek Kanakia, founder and promoter of TGBL was also booked for bribing the CMD.

“The loan funds sanctioned by the BECIL were diverted to various other entities and individuals other than for the purpose of waste management project of Pune Municipal Corporation and no project has been implemented there by TGBL. Its promoter, Kanakia, siphoned off proceeds of crime to the tune of ₹50 crore,” an ED official said. Kanakia allegedly did not return it to BECIL, resulting in BECIL incurring a wrongful loss of ₹58 crore, including penalties. CBI’s probe also revealed that TGBL allegedly submitted fake Performance Bank Guarantee of ₹25 crore to BECIL, which it could not claim to cover the losses.

Karuvilla and Prasad from BECIL were arrested by the CBI last Wednesday and Kanakia was arrested last month.

The ED searches were conducted after the agency analysed the money trail connected to the proceeds of crime, to gather incriminating evidence required as per provisions of the Prevention of Money Laundering Act, 2002 (PMLA).