ED Provisional Attachment of Property Worth ₹51 Lakh in HCA Funds Misappropriation Case
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Synopsis
The Enforcement Directorate has provisionally attached property valued at ₹51.29 lakh linked to the misappropriation of funds by Hyderabad Cricket Association officials, pursuant to the Prevention of Money Laundering Act.
Key Takeaways
- ED attached Rs 51.29 lakh property.
- Investigation based on multiple FIRs.
- Misappropriated funds for stadium construction.
- Illicit gains transferred to HCA officials.
- Further investigations are ongoing.
Hyderabad, March 19 (NationPress) The Enforcement Directorate (ED), Hyderabad Zonal Office, has provisionally attached immovable property valued at Rs 51.29 lakh under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the misappropriation of funds by the office-bearers of the Hyderabad Cricket Association (HCA).
The central agency stated that it commenced an investigation following multiple FIRs filed by the Hyderabad Cricket Association against its office-bearers for misappropriating funds allocated for constructing the Rajiv Gandhi International Cricket Stadium in Uppal, Hyderabad, as well as for misappropriating funds intended for the procurement of cricket balls, gym equipment, and bucket chairs.
As per the agency, contracts were awarded for supplying cricket balls, bucket chairs, and gym equipment to Sara Sports, Excellent Enterprises, and Body Drench India Pvt Ltd at significantly inflated prices. The illicit financial benefits received by these suppliers, termed Proceeds of Crime (POC), were funneled to Surender Agarwal, the former Vice President and Treasurer of HCA, along with his family members as part of a quid pro quo arrangement.
The investigation disclosed that a total POC of Rs 90.86 lakh was received by Surender Agarwal and his family as illegal financial gain from the suppliers of cricket balls, gym equipment, and bucket chairs.
Furthermore, the ED's investigation revealed that as a quid pro quo, Sara Sports transferred Rs 17 lakh to KB Jewellers, a proprietorship owned by Surender Agarwal's wife, and to his son Akshit Agarwal, using layered transactions through various entities under the guise of sponsoring music events and other forms of event management.
Similarly, Excellent Enterprises transferred POC amounting to Rs 21.86 lakh to the personal bank account of Akshit Agarwal under the pretext of a loan, as well as to KB Jewellers for diamond purchases. Additionally, cash withdrawals of POC from the bank accounts of Excellent Enterprises were found to have been directed to Surender Agarwal as part of the quid pro quo for supplying bucket chairs at exorbitant rates.
Employing a similar method, Body Drench India Pvt Ltd, which supplied gym equipment at inflated prices, transferred POC of Rs 52 lakh directly to the personal bank accounts of Surender Agarwal and his daughter-in-law, as well as to KB Jewellers under the pretext of buying diamonds.
The agency indicated that further investigations are ongoing.
