ED raids 17 locations in Rs 50 crore BECIL loan fraud case involving top officials

The Enforcement Directorate (ED) has intensified its investigation into a significant financial fraud linked to the Broadcast Engineering Consultants India Limited (BECIL), with searches underway across 17 locations. The operation spans seven premises in Mumbai and one in Faridabad, as part of an ongoing money laundering probe. The investigation stems from a corruption case filed by the Central Bureau of Investigation (CBI), which alleges that BECIL sanctioned an irregular loan of Rs 50 crore to The Green Billions Ltd (TGBL), a private firm based in Mumbai.

BECIL, a public sector undertaking under the Ministry of Information & Broadcasting, was accused of sanctioning the loan without proper security, violating the laid-down Standard Operating Procedures (SOPs). According to the CBI's investigation, the funds were intended for a waste management project in Pune under the Pune Municipal Corporation (PMC). However, it is alleged that the money was diverted to various unrelated entities and individuals instead of being used for the intended project. The loan was disbursed in three installments, and BECIL claims that TGBL did not initiate the project as agreed upon, nor did the firm return the funds.

The accused in the case include George Kuruvilla, the former Chairman and Managing Director (CMD) of BECIL, and WB Prasad, the General Manager (GM). Both officials are alleged to have received commissions in exchange for sanctioning the loan to TGBL. In addition, Prateek Kanakia, the promoter of TGBL, is accused of misappropriating the loan funds for personal purposes. Kanakia allegedly used a portion of the money for the renovation and construction of a bungalow in Delhi and his corporate office at One BKC in Mumbai.

The investigation was triggered by a complaint from a Joint Secretary and Chief Vigilance Officer within the Ministry of Information & Broadcasting. The complaint raised concerns about the loan approval process, which involved a loan of Rs 80 crore from the Indian Renewable Energy Development Agency (IREDA) to BECIL for multiple projects, including waste management, smart lighting, and metering. The loan was allegedly misused after being disbursed to TGBL for the Pune project, which was never initiated. The CBI also uncovered falsified documents, including a Performance Bank Guarantee from the Punjab National Bank (PNB), Ghatkopar East Branch, that TGBL submitted to BECIL.

The ED's current searches are aimed at uncovering further details of the misappropriation of funds and the role of those involved in the alleged money laundering scheme. The CBI's investigation revealed that key project documents, including essential paperwork for the waste management project, disappeared from BECIL's office in New Delhi. This investigation is expected to reveal more about the financial discrepancies and the methods used to divert the sanctioned loan amount.