Hyderabad: ED attaches Rs. 51.29 lakh under PMLA in HCA funds misappropriation case
The ED initiated investigation on the basis of several FIRs registered by Hyderabad Cricket Association against its office bearers for misappropriation of funds
Hyderabad: The Directorate of Enforcement (ED), Hyderabad has provisionally attached immovable property worth Rs. 51.29 lakh on Tuesday under the provisions of the Prevention of Money Laundering Act (PMLA), in the case of alleged misappropriation of funds of Hyderabad Cricket Association (HCA) by its office bearers.
The ED initiated investigation on the basis of several FIRs registered by Hyderabad Cricket Association against its office bearers for misappropriation of funds sanctioned for construction of the Rajiv Gandhi International Cricket Stadium at Uppal, Hyderabad as well as for misappropriation of funds in the procurement of cricket balls, gym equipment and bucket chairs, said the officials
The investigations allegedly revealed the office bearers of HCA gave contracts for supply of cricket balls, bucket chairs and gym equipment to M/s Sara Sports, M/s Excellent Enterprises and M/s Body Drench India Private Limited respectively at highly inflated prices.
“The illicit financial gains received by the suppliers, which were Proceeds of Crime (POC) in the case, were transferred to Surender Agarwal (Ex-Vice President and Treasurer of HCA) and his family members as quid pro quo,” said the ED in its statement.
The ED investigation further revealed that as quid pro quo, Sara Sports allegedly transferred Rs. 17 lakh to KB Jewellers, a proprietorship firm of Surender Agarwal’s wife as well in the personal bank account of Surender Agarwal’s son, Akshit Agarwal by layering the same through the bank accounts of several entities on the pretext of sponsoring a music show, event management, etc.
Similarly, M/s Excellent Enterprises transferred POC amounting to Rs. 21.86 lakh to the personal bank account of Surender Agarwal’s son Akshit Agarwal on the pretext of loan as well as to KB Jewellers on the pretext of purchase of diamonds, it alleged.
The cash withdrawals of POC from the bank accounts of Excellent Enterprises was also allegedly revealed to have been transferred to Surender Agarwal as quid pro quo for supply of bucket chairs at exorbitant prices.
By using the same modus operandi, Body Drench India Pvt., supplier of gym equipment at highly inflated prices, transferred POC of Rs. 52 lakh directly to the personal bank accounts of Surender Agarwal and his daughter-in-law as well to KB Jewellers on the pretext of purchase of diamonds.
Thus, ED investigation revealed that POC totalling to Rs. 90.86 lakh were received by Surender Agarwal and his family members as illegal pecuniary gain from the suppliers of cricket balls, bucket chairs and gym equipment to HCA, said official.
Further investigation is under progress.
