BECIL Loan Fraud: ED Gets Custody Of Prateek Kanakia

A court here on Tuesday remanded The Green Billions Limited CEO Prateek Kanakia in the custody of Enforcement Directorate till Jan. 9 in an alleged Rs 50 crore loan fraud linked to Broadcast Engineering Consultants India Limited (BECIL).

Kanakia was the 'main conspirator' and primary beneficiary of the proceeds of crime, and his custodial interrogation was required to trace the end use of the loan amount received from BECIL, the federal agency told the court.

The ED's money laundering case stems from a First Information Report registered by the Central Bureau of Investigation in Sept. 2024.

The CBI registered the case following a complaint from the vigilance authorities of the Information and Broadcasting Ministry under which BECIL functions.

Kanakia was in judicial custody in the case being probed by the CBI before the ED obtained his remand.

After formally arresting him in the money laundering case, the ED produced him before the special judge for cases under the Prevention of Money Laundering Act (PMLA), R B Rote.

According to the ED, Kanakia, CEO and founder of The Green Billions Limited, secured a short-term venture loan of Rs 50 crore from BECIL, a Public Sector Undertaking under the I&B ministry.

The loan was meant for a Waste-to-Energy Conversion Project of the Pune Municipal Corporation, but Kanakia diverted the funds for his personal use, the ED alleged.

A substantial portion of the loan amount was used to fund his lavish lifestyle, including luxury vehicles and high-end houses in Mumbai and Delhi, it said.

As per the terms and conditions of the loan, TGBL was required to furnish a valid Performance Bank Guarantee amounting to 25 crore to BECIL prior to the disbursement of the third tranche of the loan. But in connivance with certain officials of BECIL, this mandatory precondition was deliberately overlooked, the ED said.

Considering the probe agency's submission, the court remanded the accused in its custody till Jan. 9.