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CBI books Madhucon group for fund diversion

Infra News - Published on Fri, 15 Mar 2019

Image Source: The Economic Times
Telangana Today reported that the Central Bureau of Investigation has booked a case against 8 persons including Madhucon Project Limited, Madhucon Infra Limited and Madhucon Toll Highway Limited for allegedly indulging in diversion of funds. Former MP and TDP leader Nama Nageswara Rao is the founder of Madhucon Project Limited, which is located on Road No.36 in Jubilee Hills.

Following orders from High Court of Jharkhand, the case was booked against Ranchi Expressway Limited, its CMD K Srinivasa Rao and Directors N Seethaiah and N Prithvi Teja, Madhucon Project Limited, Madhucon Infra Limited and Madhucon Toll Highway Limited, Kota and Company and others.

According to First Information Report (FIR), the National Highways Authority of India (NHAI) had invited bids for a project related to laying four-lanes on NH-33 at Ranchi-Rargaon-Jamshedpur section on the basis of design, built, finance, operate and transfer in March 2010. Being the lowest bidder, a letter of award was given to Madhucon Project Limited in 2011.

As per requirement, a special purpose vehicle – Ranchi Express Limited (Concessionaire) was incorporated by Madhucon Group to execute the project.

Mr Srinivas Rao, Seethaiah and Teja were the founding directors of the company. Ranchi Expressway Limited entered into a concessional agreement with NHAI in April 2011 where upon the project was entrusted to the concessionaire for execution. The estimated cost of the project was Rs 1,655 crore as per common loan agreement (CLA) dated October 31, 2011 between Ranchi Expressway Limited and Consortium of Banks. However, Rao, Seethaiah and Teja in connivance with another person fraudulently round tripped Rs 50 crore given to Madhucon Projects Limited as an advance in 2012.

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Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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