How HCA ex-president, family received Rs 90.86 lakh in illegal gains from sports vendors

The agency initiated an investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Money spent on cricket balls, gym equipment and bucket chairs misappropriated

The ED probe was based on several FIRs registered by the Hyderabad Cricket Association against its office bearers.

The allegations involved the misappropriation of funds sanctioned for the construction of the Rajiv Gandhi International Cricket Stadium at Uppal, Hyderabad. Additionally, funds were allegedly misused in the procurement of cricket balls, gym equipment and bucket chairs.

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

The illicit financial gains received by the suppliers, which were Proceeds of Crime (POC) in the case, were transferred to Surender Agarwal and his family members as quid pro quo.

What was the role of sports vendors in the fraud?

“The ED investigation revealed that as quid pro quo, Sara Sports transferred Rs 17 lakh to KB Jewellers, a proprietorship firm of Surender Agarwal’s wife as well in the personal bank account of Surender Agarwal’s son, Akshit Agarwal by layering the same through the bank accounts of several entities on the pretext of sponsoring a music show, event management, etc,” said the ED.

Similarly, Excellent Enterprises transferred POC amounting to Rs 21.86 lakh to the personal bank account of Surender Agarwal’s son, Akshit Agarwal, on the pretext of a loan, as well as to KB Jewellers on the pretext of the purchase of diamonds.

Cash withdrawals of POC from the bank accounts of Excellent Enterprises were also revealed to have been transferred to Surender Agarwal as quid pro quo for the supply of bucket chairs at exorbitant prices.

By using the same modus operandi, Body Drench India Pvt., a supplier of gym equipment at highly inflated prices, transferred POC of Rs 52 lakh directly to the personal bank accounts of Surender Agarwal and his daughter-in-law, as well as to KB Jewellers on the pretext of the purchase of diamonds.

What was Azharuddin’s role?

Azharuddin’s role during his tenure as the HCA president is under scanner by ED, the sources said.

There was no immediate response from the former Indian skipper, who unsuccessfully contested the Assembly polls held last year. The money laundering case stems from three FIRs and chargesheets filed by the Telangana anti-corruption bureau (ACB) for alleged criminal misappropriation of funds of the HCA to the tune of Rs 20 crore.

“The chargesheets contain allegations of serious irregularities in the procurement of DG sets, firefighting systems and canopies for the Rajiv Gandhi Cricket Stadium constructed in Uppal, Hyderabad,” the ED had earlier said in a statement. As per the police chargesheets, despite deadlines, several works were delayed inordinately, leading to escalated costs and budget enhancements and corresponding losses to the HCA.

Advance payments made to contractors who never delivered work

It was found that the office bearers of the HCA, including its then secretary, president and vice-president and others, in collusion with private parties, ‘arbitrarily’ got various tenders and works allotted to preferred vendors/contractors at higher than market rates without following proper tender processes and in many cases even before the receipt of quotations, the agency had alleged.

Advance payments were made to many contractors but no work was done by them, it added.

The ED had said its raids undertaken last year led to the seizure of digital devices, ‘incriminating’ documents and ‘unaccounted’ cash of Rs 10.39 lakh, it said. Azharuddin began his political innings with a win from Uttar Pradesh’s Moradabad Lok Sabha seat in 2009. He is also working president of the Telangana Pradesh Congress Committee (TPCC).