Bombay HC Orders Immediate Release Of TGBL CEO Prateek Kanakia, Calls ED Arrest Illegal

Mumbai, Feb 25: The Bombay High Court has directed the “forthwith release” of Prateek Kanakia, CEO of The Green Billions Limited (TGBL), observing that his arrest by the Directorate of Enforcement (ED) was “illegal”.

A bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, on Tuesday, allowed the petition filed by Kanakia seeking a declaration that his arrest by the ED on January 5, 2025, was illegal.

Background of case

The ED arrested Kanakia on January 5 in an alleged money laundering case in connection with a Rs 50 crore loan fraud linked to Broadcast Engineering Consultants India Limited (BECIL). The ED claimed that the money was used to maintain a lavish lifestyle.

Based on a written complaint dated September 3, 2024, the Central Bureau of Investigation (CBI) registered a case under provisions of the Indian Penal Code and the Prevention of Corruption Act against six persons, including Kanakia and unknown others.

It was alleged that the Indian Renewable Energy Development Agency Limited (IREDA) sanctioned a loan of Rs 80 crore to BECIL for execution of projects related to waste management, LED smart lighting, smart metering and other works.

For execution of the project, an agreement was executed between BECIL and Kanakia-led M/s The Green Billions Limited (TGBL), Mumbai, for Pune Municipal Solid Waste Management works.

The CBI alleged that TGBL diverted a large part of the loan amount of Rs 50 crore and utilised it for personal use.

Kanakia was arrested by the CBI on March 24, 2025, and was granted bail by the special CBI court on August 4, 2025.

Based on the CBI case, the ED registered a money laundering case against Kanakia on October 25, 2024.

Arguments before court

Kanakia’s advocates, Adithya Iyer and Advait Helekar, argued that he attended the ED office every time he was summoned.

The ED claimed that it recorded Kanakia’s statements on seven occasions, and statements of several witnesses were recorded between February 2025 and January 2026.

Justifying the arrest, ED counsels Nilesh Pawaskar and Aparna Vhatkar submitted that Section 19 of the Prevention of Money Laundering Act (PMLA) empowers an ED officer to arrest a person if the officer forms a “reason to believe” that the person is guilty of an offence punishable under the Act and informs him of the grounds of arrest.

Court findings

The High Court noted that the ED’s case pertained to diversion of funds through bank transactions, which is documentary in nature and already in the agency’s possession. It observed that any “so-called confrontation with other persons, if at all necessary, can be carried out even if the petitioner is not arrested.”

The court further noted that there was neither any allegation that the petitioner failed to cooperate with the investigation nor that he attempted to influence witnesses.

Moreover, the special CBI court granted bail to Kanakia within five months, which has not been challenged. The High Court also noted that the special court had observed that “nothing was recovered and no money was seized from the petitioner to establish the money trail.”

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Terming the arrest illegal, the bench observed: “…the Investigating Officer (of ED) has exercised the powers of arrest in an illegal manner… In fact, the Investigating Officer has attempted to provide false reasons to believe and there seems to be no plausible reason to arrest the petitioner.”

The court quashed the remand orders dated January 6 and 9 and directed Kanakia’s release.

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