Enforcement Directorate raids TRS MP Nageswara Rao’s offices

Hyderabad, Jun 11 (PTI) Enforcement Directorate (ED) officials on Friday raided some offices of Madhukon Group linked to Telangana Rashtra Samithi (TRS) MP N Nageswara Rao.

Sources said that the raids are related to allegedly diverting funds of Madhucon Group company Ranchi Expressway Limited for other purposes.

Sources said the raids took place at Madhucon’s offices and some directors’ houses in Jubilee Hills.

The Central Bureau of Investigation (CBI) had registered a case in March 2020 against its promoters, including CMD of Ranchi Expressway Limited, K Srinivasa Rao. They are accused of allegedly causing damages of around Rs 1,000 crore to a consortium of banks led by Canara Bank.

Ranchi Expressway Limited was incorporated in 2011 as a special purpose vehicle promoted by Madhucon Infra Limited and Madhukon Projects Limited. The CBI said the directors had committed fraudulent acts to get loan amount of Rs 1,029.39 crore released by the consortium of banks but there was no progress on the project and the loan was declared non-performing asset (NPA) in 2018.

National Highways Authority of India terminated its agreement with the company on January 31, 2019 and forfeited Rs 73.95 crore by way of encashment of Performance Bank Guarantee with Canara Bank.

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