Mismanagement of funds for Uppal stadium HCA scam: ED attaches  immovable property

The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached immovable property worth Rs 51.29 lakh in connection with the misappropriation of funds within the Hyderabad Cricket Association (HCA). The action, taken under the Prevention of Money Laundering Act (PMLA), 2002, follows an extensive investigation into financial irregularities involving former office-bearers of the HCA.
According to the ED, the probe was initiated based on multiple FIRs filed by the HCA itself against its office-bearers for alleged mismanagement of funds allocated for the construction of the Rajiv Gandhi International Cricket Stadium at Uppal, Hyderabad, and for procurement-related irregularities.
The investigation uncovered fraudulent contracts issued at inflated prices for the supply of cricket balls, gym equipment, and bucket chairs, with kickbacks allegedly funneled to HCA’s former vice-president and treasurer, Surender Agarwal, and his family members.
The contracts were awarded to M/s Sara Sports, M/s Excellent Enterprises, and M/s Body Drench India Pvt. Ltd., with all three suppliers allegedly transferring illicit financial gains – classified as Proceeds of Crime (POC) – to Agarwal and his relatives. The ED revealed that M/s Sara Sports transferred Rs 17 lakh to M/s KB Jewellers, a proprietorship firm owned by Surender Agarwal’s wife, and to the personal account of his son, Akshit Agarwal.
The transactions were routed through multiple bank accounts under the pretext of sponsoring music events and event management services. M/s Excellent Enterprises funneled Rs  21.86 lakh into Akshit Agarwal’s bank account under the guise of a loan and also made payments to M/s KB Jewellers for “diamond purchases.” Additional cash withdrawals were linked to Surender Agarwal as kickbacks for overpriced bucket chair supplies. M/s Body Drench India Pvt. Ltd., which provided gym equipment at inflated rates, allegedly transferred Rs 52 lakh directly to the personal accounts of Surender Agarwal, his daughter-in-law, and M/s KB Jewellers, citing diamond purchases as justification.
The total sum of misappropriated funds traced by the ED amounts to Rs 90.86 lakh, which was reportedly received as illegal pecuniary gains by Agarwal and his family members. The investigation continues as officials seek to establish further financial trails and additional beneficiaries in the scam.