NewsStocksED Secures Custody of Green Billions CEO Prateek Kanakia in ₹50 Crore BECIL Loan Fraud CaseED Secures Custody of Green Billions CEO Prateek Kanakia in ₹50 Crore BECIL Loan Fraud Case
Enforcement Directorate has secured custody of The Green Billions Limited CEO Prateek Kanakia till January 9 in an alleged ₹50.00 crore loan fraud case involving BECIL. The ED alleges Kanakia diverted funds meant for a Pune Municipal Corporation waste-to-energy project for personal use, including luxury vehicles and properties in Mumbai and Delhi. The case originated from a CBI FIR in September 2024 following a complaint from I&B Ministry vigilance authorities.
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A court has remanded The Green Billions Limited (TGBL) CEO Prateek Kanakia in Enforcement Directorate custody till January 9 in connection with an alleged ₹50.00 crore loan fraud involving Broadcast Engineering Consultants India Limited (BECIL). The federal agency described Kanakia as the main conspirator and primary beneficiary of the proceeds of crime.
Case Background and Investigation
The ED's money laundering case stems from a First Information Report registered by the Central Bureau of Investigation in September 2024. The CBI case was initiated following a complaint from the vigilance authorities of the Information and Broadcasting Ministry, under which BECIL functions as a Public Sector Undertaking.
Kanakia was previously in judicial custody in the CBI case before the ED obtained his remand. After formally arresting him in the money laundering case, the ED produced him before special judge R B Rote, who handles cases under the Prevention of Money Laundering Act (PMLA).
Alleged Fraud Details
According to the ED's allegations, the case involves significant financial irregularities and misuse of public funds:
| Parameter: | Details |
|---|---|
| Loan Amount: | ₹50.00 crore |
| Loan Type: | Short-term venture loan |
| Intended Purpose: | Waste-to-Energy Conversion Project |
| Project Location: | Pune Municipal Corporation |
| Alleged Misuse: | Personal expenses and luxury lifestyle |
The ED alleges that Kanakia, as CEO and founder of The Green Billions Limited, secured the loan from BECIL specifically for the Pune Municipal Corporation's Waste-to-Energy Conversion Project. However, instead of using the funds for the intended project, Kanakia allegedly diverted the money for personal use.
Misuse of Funds
The investigation reveals that a substantial portion of the loan amount was allegedly used to fund Kanakia's lavish lifestyle. The ED claims the diverted funds were used for:
- Luxury vehicles
- High-end houses in Mumbai
- High-end houses in Delhi
- Other personal expenses
Procedural Violations
The ED has identified significant procedural violations in the loan disbursement process. As per the loan terms and conditions, TGBL was required to furnish a valid Performance Bank Guarantee amounting to ₹25.00 crore to BECIL prior to the disbursement of the third tranche of the loan.
However, the ED alleges that in connivance with certain officials of BECIL, this mandatory precondition was deliberately overlooked, enabling the fraudulent diversion of funds.
Court Proceedings
The ED told the court that Kanakia's custodial interrogation was required to trace the end use of the loan amount received from BECIL. Considering the probe agency's submission regarding the need for detailed investigation into the fund diversion, the court granted ED custody of the accused till January 9.
The case highlights concerns about oversight mechanisms in public sector lending and the need for stringent compliance with loan conditions to prevent misuse of public funds.
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