New Delhi, March 22
Directorate of Enforcement (ED) has provisionally attached immovable property worth Rs. 51.29 Lakh on under the under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in the case of misappropriation of funds of Hyderabad Cricket Association (HCA) by its office bearers.
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.
ED investigation, inter alia, revealed that 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 Pvt. Ltd. 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.
The officials added that the investigation revealed that as quid pro quo, M/s Sara Sports transferred Rs. 17 Lakh to M/s 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 M/s KB Jewellers on the pretext of purchase of diamonds. Cash withdrawals of POC from the bank accounts of M/s Excellent Enterprises was also 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, M/s 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 M/s KB Jewellers on the pretext of purchase of diamonds, officials further said.
The 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, ED further noted.
