 revealed on Wednesday that it executed searches at the office premises of four companies){kind=link}
Shillong, October 18: The Enforcement Directorate (ED) revealed on Wednesday that it executed searches at the office premises of four companies regarding a case involving the misappropriation of NHAI funds totaling Rs 102.4 crore.
In a statement, the financial investigation agency confirmed that it conducted these searches at the offices of Bharat Road Network Limited (BRNL) and Guruvayoor Infrastructure Private Limited (GIPL) in Kolkata, KMC Constructions Ltd in Hyderabad, and GIPL’s office in Thrissur. This action was part of the agency’s money laundering probe linked to the alleged diversion of NHAI funds.
As per IANS, during these searches, the ED discovered that GIPL had invested toll collections in mutual funds without reimbursing NHAI for unfinished work. As a result, a freezing order was issued for a sum of Rs 125.21 crore, affecting the bank balance and Fixed Deposits of Guruvayoor Infrastructure Private Limited in Kolkata.
The searches also uncovered incriminating documents at the office of KMC Constructions Limited, revealing that the company had sold 51% of its share in GIPL to BRNL without the requisite valuation and NHAI approval as stipulated in the contract terms. Consequently, a freezing order was issued against the bank balances of KMC Constructions Limited, amounting to Rs 1.37 crore.
The ED initiated a money laundering case based on an FIR filed by the CBI against GIPL and others. The allegations centered on a criminal conspiracy involving the company, its then Director Vikram Reddy, and unidentified NHAI officials in Palakkad. This conspiracy was related to work on two sections of National Highway 47 between 2006 and 2016, resulting in NHAI being defrauded of approximately Rs 102.44 crore.
The ED’s investigation unveiled that GIPL, along with sub-contractor KMC Constructions Limited, colluded with NHAI officials and the project’s Independent Engineer to fraudulently obtain a completion certificate for the road project. They subsequently began collecting tolls from the public.
Furthermore, it was revealed that the accused company generated revenue illegally by leasing out advertisement space without completing the construction of bus bays. This led to an unjust gain of Rs 125.21 crore, representing the value of work that was never executed and thus deemed proceeds of crime under the Prevention of Money Laundering Act, 2002.