ED Attaches Assets Worth Rs. 51.29 Lakh in HCA Fund Misappropriation Case
(By Syed Ali Taher Abedi)
Hyderabad,19, March, 2025.In a significant move against financial misconduct, the Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached immovable property valued at Rs. 51.29 lakh on March 18, 2025. This action was taken under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a high-profile case involving the misappropriation of funds by the office bearers of the Hyderabad Cricket Association (HCA).
Misuse of HCA Funds for Personal Gain
The ED initiated its investigation after several First Information Reports (FIRs) were filed by the HCA, accusing its office bearers of misusing funds meant for the construction of the Rajiv Gandhi International Cricket Stadium at Uppal, Hyderabad. Additionally, the funds meant for the procurement of cricket balls, gym equipment, and bucket chairs were also misappropriated.
Exorbitant Contracts and Illicit Financial Gains
Upon investigation, the ED uncovered that the HCA office bearers had awarded contracts to suppliers like M/s Sara Sports, M/s Excellent Enterprises, and M/s Body Drench India Pvt. Ltd. for the supply of cricket balls, gym equipment, and bucket chairs, but at vastly inflated prices. These inflated deals allowed the suppliers to make illegal profits, which were subsequently transferred as “proceeds of crime” (POC) to Surender Agarwal, the former Vice President and Treasurer of HCA, and his family members. This exchange was structured as a quid pro quo arrangement.
Details of the Illicit Financial Flow
The investigation revealed that M/s Sara Sports transferred Rs. 17 lakh to M/s KB Jewellers, a business owned by Surender Agarwal’s wife, and also to the personal bank account of his son, Akshit Agarwal. This transfer was disguised under the pretext of sponsoring a music show and event management expenses. In another instance, M/s Excellent Enterprises transferred Rs. 21.86 lakh to Akshit Agarwal’s personal account, masking it as a loan, as well as making payments to M/s KB Jewellers under the guise of purchasing diamonds.
Further investigation revealed that M/s Body Drench India Pvt. Ltd., a supplier of gym equipment at inflated prices, transferred Rs. 52 lakh to the personal accounts of Surender Agarwal and his daughter-in-law, also sending funds to M/s KB Jewellers for the purchase of diamonds.
Total Illegal Gains of Rs. 90.86 Lakh
Through these fraudulent transactions, Surender Agarwal and his family members illicitly received a total of Rs. 90.86 lakh as proceeds from the inflated contracts for cricket balls, gym equipment, and bucket chairs supplied to the HCA.
Ongoing Investigation
The ED has taken stringent action by attaching assets linked to the proceeds of crime. As the investigation continues, more details are expected to emerge regarding the full scale of the financial wrongdoing. The ED is working to track the remaining illicit gains and identify further individuals involved in this scandal.
This case serves as a strong reminder of the need for vigilance in managing public funds, particularly in high-profile institutions like the Hyderabad Cricket Association. The ED’s ongoing efforts highlight the commitment to rooting out corruption and holding those responsible accountable.
Further updates on the case will follow as the investigation progresses.
