The Central Bureau of Investigation (CBI) arrested George Kuruvilla, former Chairman and Managing Director of Broadcast Engineering Consultants India Limited (BECIL), and W.B. Prasad, former General Manager, for their alleged involvement in a fraudulent loan disbursal and bribery case. The arrests were made in connection with a larger criminal conspiracy that also includes Prateek Kanakia, CEO of TGBL (Technology Global Business Limited), a Mumbai-based firm.
According to CBI’s release, Kuruvilla and Prasad were found to have colluded with Kanakia and others to illegally disburse a Rs 50 crore venture loan to TGBL in 2022. In exchange, the BECIL officials allegedly received an undue advantage of Rs 3 crore, flagged as bribe money in the FIR.
The loans, sanctioned under false pretenses, were backed by a fake Performance Bank Guarantee (PBG) of Rs 25 crore submitted by TGBL—a key document now confirmed to be forged.
CBI Tightens Net, More Arrests Expected
The case first came to light in September 2024, when CBI registered an FIR under various IPC sections (120-B, 201, 420, 467, 468, 471) and the Prevention of Corruption Act against multiple individuals, including legal advisors and consultants within BECIL. The arrested accused were produced before the Special CBI Court, Mumbai, which granted police custody till April 19, 2025.
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The central agency had already arrested Kanakia on March 24. His custody has now been extended to match the timeline of the arrested BECIL officials. CBI sources indicated that further arrests are likely as the probe continues into others who may have facilitated the fraudulent transaction, overlooked due diligence, or received financial benefits.
Notably, investigation records indicate that the sanctioned loan amount was never used for its stated purpose and remains unpaid. The omission and commission of acts by the arrested officials resulted in a loss of approximately Rs 58 crore to BECIL—a staggering figure for a public sector company that prides itself on service-based transparency.
The Systemic Rot in Loan Disbursal Practices
Investigators have pointed out systemic failures within BECIL’s loan and audit mechanisms. Despite the involvement of multiple departments and consultants, no red flags were raised during or after the disbursal of the Rs 50 crore. The forged bank guarantees went unnoticed. Compliance processes were allegedly bypassed with internal approvals rushed and no external verification sought.
Legal experts have commented on how this case showcases a textbook example of criminal conspiracy within government-linked enterprises—where oversight was deliberately weakened for personal gain. This, they argue, not only erodes public trust but also points to a deeper rot that needs urgent reforms in PSU governance structures.