Mumbai Court Sends Prateek Kanakia to ED Custody in BECIL Loan Fraud Case

Mumbai: The Enforcement Directorate (ED) Mumbai regional office arrested Prateek Kanakia, CEO of The Green Billions Limited (TGBL), on January 5 in connection with a money laundering case involving Rs 47.32 crore. The arrest was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Kanakia was produced before the PMLA Special Court in Mumbai on January 6, which remanded him to ED custody until January 9, 2026.

Details of the Loan Fraud

ED investigations revealed that the accused fraudulently obtained a loan of Rs 50 crore from Broadcast Engineering Consultants India Limited (BECIL), causing undue loss to the public sector undertaking. BECIL is a government-owned enterprise.

The fraud is linked to a West-to-Energy project tendered by Pune Municipal Corporation (PMC) in 2018. The project was awarded to Veriet Consultants in 2019, followed by an agreement in 2020 between PMC and Veriet Pune West to Energy Private Limited (SPV).

TGBL signed a binding term sheet to acquire this SPV and proposed forming a consortium with BECIL, where BECIL was to act as the project management consultant and financial partner for the PMC project.

Misuse of Funds and Lavish Lifestyle

In 2022, the Indian Renewable Energy Development Agency Limited (IREDA) sanctioned a short-term loan of Rs 80 crore to BECIL, of which Rs 50 crore was forwarded by BECIL to TGBL. The ED found that Prateek Kanakia, with the help of former BECIL employees, used forged and fabricated documents to fraudulently obtain the loan without fulfilling the stipulated conditions.

Kanakia misappropriated the funds, and no work was carried out at the project site. Further investigation revealed that the accused used the illicit money for personal expenses and maintaining a luxurious lifestyle. This included the use of luxury vehicles and renting and renovating high-end residential properties in prime locations in Mumbai and Delhi, creating a false impression of financial prosperity.

The ED’s investigation is ongoing to uncover more details about the case.