The Enforcement Directorate (ED) has taken into custody Prateek Kanakia, the Chief Executive Officer and founder of a Mumbai-based company, in a significant money laundering case. Kanakia, of The Greenbillions Limited, was arrested on Tuesday, January 6, 2026, for allegedly misappropriating and diverting loans amounting to Rs 47.32 crore for personal gains and misusing government funds.
Allegations of Lavish Lifestyle Funded by Fraud
According to the federal probe agency, a substantial investigation into the use of the loan money is underway. The ED claims that a significant part of the funds was used to finance an extravagant lifestyle. This allegedly included the use of luxury vehicles and high-end residential properties in prime areas of Mumbai and Delhi. In its remand plea, the ED stated these assets, though not owned by Kanakia, were used to create a false impression of financial prosperity and business success.
The special court in Mumbai has remanded Kanakia to ED custody until January 9. His lawyers, however, have strongly denied all allegations before the court. They argued that the case is based on documentary evidence and, therefore, his custodial interrogation is unnecessary.
The Pune Waste Management Project Scam
The roots of the case trace back to a project with the Pune Municipal Corporation (PMC). In 2018, the PMC sought expressions of interest to set up a waste-to-energy plant. The project was eventually awarded, and Kanakia's firm later entered the picture with plans to acquire a subsidiary involved.
The ED alleges that Kanakia, through his private firm and in connivance with former employees of Broadcast Engineering Consultants India Limited (BECIL), fraudulently obtained credit facilities. This was done in the name of the Pune Waste Management Project using forged documents. The agency claims that government funds received from BECIL were misused with no real intention of executing the PMC project.
"Pune PMC officials confirmed that no work was undertaken at the project site," the ED alleged, pointing to an irrecoverable delay and financial loss to BECIL. The probe revealed that in 2022, a short-term loan of Rs 80 crore was sanctioned to BECIL by the Indian Renewable Energy Development Agency Limited (IREDA). Out of this, BECIL sanctioned Rs 50 crore to Kanakia's firm. The ED contends this disbursement happened without complying with stipulated conditions.
Broader Investigation and Legal Proceedings
The current ED probe is based on a Central Bureau of Investigation (CBI) case filed in 2024. The CBI case alleged cheating, forgery, and violations under the Indian Penal Code and the Prevention of Corruption Act. Notably, the CBI had previously arrested former top officials of BECIL, which operates under the Ministry of Information and Broadcasting.
The arrest of Prateek Kanakia marks a crucial development in this multi-agency investigation into the alleged siphoning of funds meant for a public utility project. The case highlights the scrutiny on financial misconduct and the alleged diversion of loans intended for development projects into personal coffers.
