How Hyderabad Cricket Association made Rs 90 lakh via gyms, cricket balls, bucket chair contract

Hyderabad: The sleuths of the Enforcement Directorate, Hyderabad Zone, have attached properties worth Rs 51.29 lakh in the case of misappropriation of funds of Hyderabad Cricket Association (HCA) by its office bearers. This particular case has sparked controversies and has made the previous office bearers infamous, including the former Indian cricket captain Mohammad Azharuddin.

Following complaints, multiple FIRs were registered by the Hyderabad Cricket Association against its office bearers for misappropriation of funds sanctioned for the construction of the Rajiv Gandhi International Cricket Stadium at Uppal here as well as for misappropriation of funds in the procurement of cricket balls, gym equipment and bucket chairs.

How various sports equipment agencies linked to illicit gains

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 respectively at highly inflated prices.

The illicit financial gains received by the suppliers were transferred to one Surender Agarwal (former vice president and treasurer of HCA) and his family members as quid pro quo.

Based on a complaint, 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.

Similarly, Excellent Enterprises transferred an amount of Rs 21.86 lakhs 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 purchasing diamonds. Basically, both companies that received the contract, transferred the proceeds of crime to Agarwal.

ED has established that cash withdrawals of POC (Proceeds of Crime) 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, another company Body Drench India, a supplier of gym equipment was given a contract at highly inflated prices. This company 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 purchasing diamonds.

Thus, ED investigation revealed 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.

The case is still under investigation.