Mumbai’s PMLA court has ordered Pratik Kanakiya’s remand to Enforcement Directorate custody, escalating the crackdown on the BECIL loan fraud racket. The multi-crore scandal has exposed how fraudsters exploited a government body to orchestrate fake loans, causing massive financial losses.
Kanakiya, a central figure in the conspiracy, allegedly headed operations that created fictitious borrowers and inflated project costs. ED’s chargesheet details how Rs 450 crore-plus was sanctioned through doctored files, with funds routed via layered hawala transactions.
During the hearing, ED counsel highlighted digital footprints linking Kanakiya to 20 shell firms, many registered in his family’s name. Raids yielded incriminating ledgers and communication records implicating politicians and bureaucrats.
The five-day custody order allows ED to confront Kanakiya with co-accused and trace overseas remittances. Defense pleaded health concerns, but medical reports were dismissed as fabricated.
BECIL’s role in national digital initiatives now faces scrutiny, prompting an internal audit and potential CBI involvement. This fraud underscores the perils of inadequate KYC in public lending, where insiders prioritized commissions over compliance.
Industry experts call for AI-driven verification systems to prevent recurrence. With assets worth Rs 100 crore already frozen, ED aims for speedy attachment and trial. Kanakiya’s detention signals zero tolerance for economic offenders undermining India’s growth story.
