CBI arrests ex-CMD of BECIL in ₹58 cr corruption case

MUMBAI: The Mumbai unit of the Central Bureau of Investigation (CBI) on Wednesday arrested the former chairman-cum-managing director (CMD) and the general manager of a central public-sector enterprise (PSE), BECIL (Broadcast Engineering Consultants India Limited), in an alleged corruption case related to its sanction of a ₹50 crore loan to a private firm for a Pune civic project. The loan was not recovered and instead got diverted, thereby causing BECIL a ₹58 crore loss, according to CBI.

The CBI arrested the accused duo, BECIL’s ex - CMD G Kuruvilla and general manager WB Prasad on grounds of alleged misconduct, omissions and commissions during the performance of their official duties, after which a court remanded them to CBI’s custody till Saturday. Kuruvilla was accused by the CBI of obtaining an undue advantage from the case’s co - accused Prateek Kanakia, the promoter of the concerned firm, The Green Billions Limited (TGBL), Mumbai, for the favours done while sanctioning the loan, as per revelations made in the probe, agency sources said.

Kanakia was arrested on March 24 and was under judicial custody. The CBI has taken his custody along with Kuruvilla and Prasad till Saturday. While granting their custody to the CBI, a Mumbai special court on Thursday said, “Heard counsels of both the sides. The matter involved serious fraud involving public servants. On perusal of case diary, there are sufficient grounds which warrant the custodial interrogation of the accused.”

The CBI had on September 3, 2024, booked Kuruvilla, Prasad, Kanakia, The Green Billions Limited, a BECIL contractual employee and a consultant, and unknown others. The FIR was registered under sections of the Indian Penal Code ( IPC) and the Prevention of Corruption (PC) Act pertaining to offences including those relating to criminal conspiracy, cheating and a public servant being bribed.

It was alleged in the CBI FIR that the Indian Renewable Energy Development Agency Limited (IREDA), a Public Limited Government Company, had sanctioned a loan of ₹80 crore to BECIL for execution of projects related to waste management / LED Smart Lighting/ Smart Metering projects and other projects. BECIL thereafter had executed an agreement with the firm in Mumbai, for execution of a Pune civic solid waste management works’ contract. Out of the sanctioned loan amount, BECIL disbursed a loan of ₹50 crore to the firm for the said project in three instalments allegedly without any genuine security.

The firm allegedly submitted a forged Performance Bank Guarantee and diverted the loan proceeds. The firm allegedly did not return the loan funds to BECIL nor started the project in question, thereby causing wrongful loss to BECIL, according to CBI sources. Further, the original file containing crucial project documents was found missing from the office of BECIL, New Delhi, according to the CBI.