Efficient room-temperature luminescence at optical telecommunication wavelengths and originating from direct band-to-band recombination has been observed in tensile-strained germanium nanocrystals synthesized by mechanical grinding techniques. Selected area electron diffraction, micro-Raman and optical-absorption spectroscopy measurements indicate high tensile-strains while combined photoluminescence spectroscopy, excitation-power evolution and time-resolved measurements suggest direct band-to-band recombination. Such band-engineered germanium nanocrystals offer great possibilities for silicon-photonics integration due to their superb light-emission properties, facile fabrication and compatibility with standard microelectronic processes.