ED raids offices of this infra company in relation to Rs 1,064 cr bank fraud

New Delhi: Central probe agency ED raided offices of Madhucon Grp this morning in relation to Rs 1,064 crore bank fraud. The Group belongs to TRS MP Nama Nageswara Rao. 

The ED raided offices of Madhucon Infra in Jubilee Hills and also the home of Chairman and Managing Director of Ranchi Express Way Ltd K Srinivasa Rao as well as other directors of the company- N Prithvi Teja and N Seetaiah. N Prithvi Teja is the son of Nama Nageswara Rao. The offices and home of Nama Nageswara Rao were also raided  

Way back in 2019, the CBI had registered an FIR and even filed chargesheet against Ranchi Express Way Ltd and its directors in 2020. CBI had booked  promoters of Ranchi Express Way Ltd and also the Chairman and Managing Director CMD K Srinivasa Rao for allegedly defrauding Rs 1,000 crore to a group of banks led by Canara Bank, a public sector bank.

CBI had alleged that the directors of the company indulged in forging and fraud to avail a loan of Rs 1,029.39 crore. The loan amount had become a non-performing asset in 2018. 

It was on 31 January 2019, the NHAI terminated the contract with the company. It even forfeited Rs 73.95 crore through encashment of the performance bank guarantee with Canara Bank.