CWG scam: ED attaches construction firm’s assets worth Rs 11.28 crore
The central probe agency said it has issued a provisional order for the attachment of assets of the firm -- Ms AKR Construction Limited -- under provisions of the Prevention of Money Laundering Act.india Updated: Jan 04, 2018 21:58 IST
The Enforcement Directorate (ED) has attached a construction firm’s assets worth Rs 11.28 crore in connection with its money laundering probe into the 2010 Commonwealth Games held here, the agency said on Thursday.
The action has come after five years of the agency registering a criminal case in the alleged irregularities in the installation of Timing, Scoring and Resulting (TSR) system for the sporting extravaganza.
The central probe agency said it has issued a provisional order for the attachment of assets of the firm -- Ms AKR Construction Limited -- under provisions of the Prevention of Money Laundering Act (PMLA).
The attached assets include an immovable property in the upmarket Banjara Hills area of Hyderabad, valued at over Rs 5.98 crore, and more than Rs 5.29 crore funds lying in a bank account.
The ED had registered a criminal case against M/s Swiss Timing Limited after taking cognisance of a CBI FIR.
The agency said the investigation conducted revealed that for the installation of the TSR system, officials of the Organising Committee (OC) of the Commonwealth Games 2010 “conspired” with private persons and abused their official positions for awarding the tender to Ms Swiss Timing.
This was done, it said, “by manipulating the tender process related to the TSR system and that caused a loss of Rs 95,60,64,729 to the OC and corresponding gain to Ms Swiss Timing and others.”
“Investigation also revealed that Ms Swiss Timing entered into a fraudulent contract with Ms Gem International and Ms Gem International in turn awarded sub-contract to Ms AKR Construction Ltd, Hyderabad, and paid about Rs 11.28 crore,” the probe agency said.
The ED said that the construction firm under the control of A K Reddy raised fake bills against labour contract, supply of cables among others and siphoned off the amount.
The Commonwealth Games were held in Delhi in 2010 and were marred by allegations of corruption after which investigative agencies such as the ED, the Income Tax Department and the CBI began their separate probes.
An attachment order under the PMLA is aimed at depriving the accused from taking benefits of their alleged ill-gotten wealth and such an ED order can be appealed by the affected party before the Adjudicating Authority of the Act in 180 days time.