ED conducted searches at offices of Madhucon Group belonging to TRS MP Nama Nageswara Rao in connection with ₹1,064 crore bank fraud
A team of Enforcement Directorate on Friday conducted searches at offices of Madhucon Group belonging to TRS MP and its Lok Sabha floor leader Nama Nageswara Rao in connection with ₹1,064 crore bank fraud.
The ED began searches at 7 am at residence of Khammam MP Nageswara Rao, Madhucon Infra office in Jubilee Hills, the residence of CMD of Ranchi Express Way K Srinivasa Rao, and other directors N Prithvi Teja and N Seetaiah. Prithvi Teja is the son of Rao.
The CBI had first registered FIR in 2019 and filed chargesheet against Ranchi Express Way Limited and its directors in 2020. At that time, the CBI booked the promoters of the Ranchi Expressway Ltd, including its CMD K Srinivasa Rao, for allegedly causing a loss of over ₹1,000 crore to a consortium of banks led by Canara Bank.
The CBI had said there was no progress in the project work and the directors indulged in fraud to get a loan of ₹1,029 crore. In 2018, the loan became a non-performing asset.
The directors allegedly indulged in fraudulent acts to get a total loan amount of ₹1,029.39 crore released by the consortium of banks but no progress was made on the project with the loan becoming a non-performing asset in 2018, CBI had said.
On January 31, 2019, the National Highways Authority of India terminated its contract with the company and forfeited ₹73.95 crore by way of encashment of the performance bank guarantee with Canara Bank.