New Delhi, Oct 18 The Enforcement Directorate (ED) on Wednesday said that it carried out searches at the office premises of four companies in connection with a case of embezzlement of NHAI funds to the tune of Rs 102.4 crore.
The financial probe agency in a statement said that the agency carried out searches at the offices of theBharat Road Network Limited (BRNL) and Guruvayoor Infrastructure Private Limited (GIPL) in Kolkata, KMC Constructions Ltd in Hyderabad and GIPL office in Thrissur, with regard to its money laundering probe involving embezzlement of NHAI funds.
The agency said "during searches, the ED found that the toll collections were invested by GIPL into mutual funds without remitting the cost of work not done to NHAI".
“Hence freezing order was issued for a value Rs 125.21 crore against the bank balance and Fixed Deposits of Guruvayoor Infrastructure Private Limited in Kolkata,” the ED said.
The ED said that searches have led to seizure of incriminating documents from the office premises of KMC Constructions Limited which revealed that the company has sold its 51 per cent share in GIPL to BRNL without any proper valuation and without taking necessary approval from NHAI as per the contract terms.
“Hence a freezing order was issued against the bank balances of KMC Constructions Limited for a value of Rs 1.37 crore,” the ED said.
They registered a case of money laundering on the basis of FIR registered by CBI against GIPL and others alleging that thecompany and itsthen Director Vikram Reddy entered into a criminal conspiracy with unknown officials of NHAI, Palakkad, in connection with execution of work related to two sections of National Highway 47, during the period from 2006 to 2016 and thereby cheated NHAI, to the tune of about Rs 102.44 crore.
“ED probe found that GIPL and sub-contractor KMC Constructions Limited, with officials of NHAI and the project Independent Engineer fraudulently obtained the completion certificate of the road project and started collecting toll from public,” the ED said.
“Investigation also revealed that without completing the construction of the bus bays, the accused company illegally generated revenue from letting out the advertisement space. Thereby the accused derived undue benefit of Rs 125.21 crore which is the value of the work not executed and proceeds of crime under PMLA, 2002,” it added.
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