Hyderabad: The Central Bureau of Investigation (CBI), Ranchi, has booked the promoters of Madhucon Private Limited, a company founded by Telugu Desam member Nama Nageswara Rao, who is said to be a close aide of Andhra Pradesh Chief Minister N. Chandrababu Naidu.
The fraud was detected in a road project, the four-lane NH-33 between Ranchi-Rargoan-Jamshedpur worth Rs 1,151.60 crore. The promoters are said to have diverted Rs 264.01 crore.
The project was to build, design, finance operate and transfer the NH-33. It was awarded to Madhucon Projects in 2011. As per requirement, a special purpose vehicle, Ranchi Expressway Ltd (concessionaire), was incorporated by the Madhucon Group to execute the project. The directors were K. Srinivasa Rao, N. Seethaiah and N. Prithvi Teja, and all three of whom have been booked by the CBI.
The Serious Fraud Investigation Office, New Delhi, was directed by the HC of Jharkhand to inquire into the irregularities.
Madhucon also took Rs 1,029.39 crore loan
The Serious Fraud Investigation Office (SFIO), New Delhi, found that Rs 264.01 crore designated to the project was not made available for the purpose and was instead diverted. A sum of Rs 98 crore that was meant for maintenance, Rs 94.01 crore meant for utilisation of material and mobilisation of advances given to Madhucon were diverted.
According to the FIR issued by the CBI, ‘A sum of Rs 264.1 crore (in different instalments) was diverted by Madhucon Projects Limited to Madhucon Infra Ltd, which in turn routed the said amount to the account of Madhucon Toll Highway and further to Ranchi Expressway. In furtherance of the conspiracy the auditors M/s Kota and Company, Hyderabad, dishonesty and fraudulently issued a false audit certificate dated 30-01-2012 based on the above round-tripping of money, showing a total contribution by the promoters to the extent of Rs 124. 82 crore.’
The SFIO also found that a loan of Rs 1,029.39 crore was released by the consortium of banks to M/s Ranchi Expressway but there was no commensurate progress in the project.
The CBI has registered a case against Madhucon Projects Ltd, Madhucon Infra Ltd and Madhucon Toll Highway Ltd, and three other companies, under Section 120-B r/w 420, 468, 471 & 477 A (criminal conspiracy, cheating, forgery, using forged documents as genuine, falsification of account and criminal misconduct) of the Prevention of Corruption Act.
