The Enforcement Directorate has searched multiple offices in three states in connection with its probe into the alleged embezzlement of funds of the National Highway Authority of India (NHAI).
The raids were conducted on October 16 at the offices of Bharat Road Network Limited (BRNL) in Kolkata, Guruvayoor Infrastructure Private Limited (GIPL) in Kerala’s Thrissur and KMC Constructions Limited in Hyderabad.
ED initiated its investigation based on an FIR registered by the Central Bureau of Investigation (CBI) against GIPL and others under various sections of the Indian Penal Code and Prevention of Corruption Act.
The FIR had alleged that GIPL and its then director Vikram Reddy entered into a criminal conspiracy with unknown officials of the NHAI in Palakkad in connection with execution of work on National Highway-47 during the period from 2006 to 2016.
The company allegedly cheated the NHAI and the central government to the tune of around Rs 102.44 crore.
The ED investigation revealed that GIPL and its 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.
“Investigation has 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,” the ED said in a statement.
The agency claimed that during its searches on Monday, it was found that the GIPL had invested the toll collections in mutual funds without remitting the cost of work not done to the NHAI.
ED has issued a freezing order for a value of Rs 125.21 crore against the bank balance and the fixed deposits of GIPL under Section 17(1-A) of PMLA.
"Further, searches have led to seizure of incriminating documents from the office premises of M/s. KMC Constructions Limited which revealed that the company has sold its 51% share in M/s GIPL to M/s BRNL without any proper valuation and without taking necessary approval from NHAI as per the contract terms," the ED said in its statement.