ED alleges kickbacks in purchase of balls, chairs, gym equipment by Hyderabad Cricket Association

New Delhi: The Enforcement Directorate Wednesday claimed that the office bearers of the Hyderabad Cricket Association (HCA) gave contracts at "highly inflated" prices for supply of cricket balls, bucket chairs, and gym equipment installed at the Rajiv Gandhi International Cricket Stadium.

The federal probe agency in a statement said that on Tuesday it issued a provisional order for attachment of immovable properties worth Rs 51.29 lakh as part of its investigation under the Prevention of Money Laundering Act (PMLA).

Probe found, the ED said, that the HCA office bearers gave contracts for supply of cricket balls, bucket chairs and gym equipment to companies Sara Sports, Excellent Enterprises, and Body Drench India Pvt Ltd, respectively, at highly inflated prices.

The merchandise was meant for the Rajiv Gandhi International Cricket Stadium located in the Uppal area of the city.

The agency only named Surender Agarwal, the ex-Vice President and Treasurer of HCA, in the statement, saying the "illicit" financial gains received by the suppliers, which are proceeds of crime in the case, were transferred to him and his family members as "quid pro quo." Agarwal or his family members could not be contacted immediately for a response on the charges made by the ED.

The agency alleged that "proceeds of crime totalling 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." It claimed that Sara Sports transferred Rs 17 lakh to KB Jewellers, a proprietorship firm of Surender Agarwal's wife, as well to a personal bank account of his son Akshit Agarwal by "layering" the funds through accounts of several entities on the pretext of sponsoring a music show and event management.

Similarly, it said, Excellent Enterprises transferred Rs 21.86 lakh to Akshit Agarwal's bank account on the pretext of loan, and to KB Jewellers, in the name of purchase of diamonds.

Cash withdrawals from the bank accounts of Excellent Enterprises show that funds were "transferred" to Surender Agarwal as "quid pro quo" for supply of bucket chairs at "exorbitant" prices, according to the ED.

Using the same modus operandi, Body Drench India, a supplier of gym equipment, transferred 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, the agency claimed.

The money laundering case stems from three FIRs and charge sheets filed by the Telangana Anti-Corruption Bureau (ACB) in connection with alleged misappropriation of Rs 20 crore at the HCA.

The ED has recorded the statement of various officer bearers of the HCA apart and former Indian cricket team captain and Congress leader Mohammed Azharuddin, who earlier served as the president of the HCA.

Azharuddin dismissed allegations against him as "false" and "motivated."