On a day of high decibel show of strength by the Bharatiya Janata Party and Telangana Rashtra Samithi, the Directorate of Enforcement has said that it has attached 105 assets worth ₹96.21 crore belonging to Madhucon Group of companies, its directors and promoters.
The group is promoted by senior TRS leader and Lok Sabha member Nama Nageshwara Rao. “We have attached the assets in a money laundering case under the provisions of PMLA (Prevention of Money Laundering Act), 2002,” the Directorate said in a statement on Saturday.
The agency initiated an investigation into the case based on an FIR (First Information Report) filed by the Central Bureau of Investigation in 2019 against Ranchi Expressways Limited, an arm of the Hyderabad-based infrastructure company and its directors. The CBI filed a charge sheet against the accused in December 2020 in a designated Ranchi court.
Details of the case
The Directorate said the National Highway Authority of India (NHAI) had awarded a project for four-laning the NH-33, covering a distance of 163 kms on the Ranchi-Rargaon-Jameshdpur section. The charge sheet alleged that the company couldn’t complete the project despite availing of the full loan amount. Their contract was terminated and an FIR was filed on directions by the High Court.
It alleged that the group company obtained loans to the tune of ₹1,030 crore from the consortium of banks led by Canara Bank. Madhucon Group did not utilise the entire loan amount for its stated purposes, and diverted it to its associated entities and utilised it for other works.
“The ED conducted searches, recorded the statements of multiple bankers, forensic auditors, engineers, subcontractors and promoters of Madhucon Group,” a statement said. “During the searches, we seized incriminating evidences and found and seized unaccounted amount of ₹34 lakh from Nama Nageshwar Rao’s residence,” it said.