A team of central investigating agency Enforcement Directorate (ED) went to Hyderabad on Friday morning to conduct searches at the residence and offices of Telangana Rashtra Samithi (TRS) MP Nama Nageswara Rao and Ranchi Express Way Limited directors in connection with a Rs 1, 064 crore bank fraud. According to sources in the ED headquarters, the raids started at 7 am at six locations that included residences of the Khammam MP and his son Prithvi Teja, Madhucon Infra office in Jubilee Hills, residences of CMD of Ranchi Expressway K Srinivasa Rao and director N Seetiah, along with their offices.
The Central Bureau of Investigation (CBI) had first registered the FIR in the case in 2019 against Madhucon Project, Madhucon Infra, Madhucon Tolly Highway, and auditors and officials of a consortium of banks. A chargesheet was filed against Ranchi Expressway Limited and its directors in 2020 after which the case was investigated. It was found that a fraud worth Rs 1,151.60 crore took place.
The promoters of Madhucon Infra Ltd, who were awarded the four-lane road project in March 2011, allegedly diverted Rs 264.01 crore. It was reported that the TRS MP was the personal guarantor for the bank loan.
The Serious Fraud Investigation Office (SFIO) also found that a loan of Rs 1,029.39 crore was released by the consortium of banks led by Canara Bank to the Expressway but there was not much progress in the project.
Based on the case lodged by the CBI, the ED had registered the case under the Prevention of Money Laundering Act and is now probing the case under these charges. Friday morning’s raids at various locations were conducted after the investigating agency received special inputs in the case. The auditors and chartered accountants of the above-mentioned companies are also on the radar of investigating agencies.