ED establishes quid pro quo in HCA irregularities case
ED initiated probe after FIRs were registered against HCA office bearers
Hyderabad: The Enforcement Directorate, Hyderabad, has attached immovable property worth `51.29 lakh under the Prevention of Money Laundering Act (PMLA), 2002 in the case of misappropriation of Hyderabad Cricket Association funds by its office-bearers.
The ED investigation, inter alia, revealed that the office-bearers gave contracts for supply of cricket balls to Sara Sports, bucket chairs to Excellent Enterprises and gym equipment to Body Drench India Pvt. Ltd, at highly inflated prices.
The illegal financial gains received by the suppliers, which were proceeds of crime (POC) in the case, were transferred to Surender Agarwal, HCA former vice-president and treasurer, and his family members as quid pro quo, the ED stated.
Sara Sports subsequently transferred `17 lakh as sponsorship of a music show. Excellent Enterprises transferred POC amounting to `21.86 lakh to the personal bank account of Akshit Agarwal as ‘loan’ and to KB Jewellers towards ‘purchase of diamonds’.
Cash withdrawals of POC made by Excellent Enterprises were 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. Ltd, supplier of gym equipment at highly inflated prices, transferred POC of `52 lakh directly to the personal bank accounts of Surender Agarwal, his daughter-in-law and KB Jewellers for purchasing diamonds.
ED investigation revealed that POC totalling `90.86 lakh was received by the Agarwals as illegal pecuniary gains.
The agency is investigating the case on the basis of several FIRs registered by HCA against its office-bearers on charges of misappropriation of funds sanctioned for the construction of the Rajiv Gandhi International Cricket Stadium (RGICS) at Uppal, and to buy materials.
