Hyderabad: Officials of the Enforcement Directorate, Hyderabad zone, filed a prosecution complaint (PC) before the special court here against former BRS MP Nama Nageswara Rao’s companies under the provisions of Prevention of Money Laundering Act (PMLA), 2002.
The companies named in the complaint include Ranchi Expressway Ltd, Madhucon Projects Ltd, Madhucon Toll Highway Ltd., Madhucon Infra Ltd among others.
The court took cognizance of the complaint on August 31 and reportedly directed the authorities to file a chargesheet.
The ED and the DRI are to file a chargesheet against the former BRS MP and his fictitious companies who are accused of deflating over Rs.360 crore allegedly using fictitious and existing firms through money-laundering means, sources in the ED disclosed.
On October 17, 2022, the Enforcement Directorate (ED) provisionally attached 28 immovable properties and other assets worth Rs.80.65 crore belonging to Nageswara Rao and his family members. The raid and attachments continued against Ranchi Expressway Ltd-Madhucon Projects Limited SPV.
Nageswara Rao was also the promoter and director of the Madhucon Group; later the ED attached the registered office of the Madhucon Group and some residential properties owned by Nageswara Rao in Jubilee Hills and other areas of the city.
During the investigation, the ED attached Nageshwara Rao’s immovable assets worth Rs.67 crore in Hyderabad, Khammam, and Prakasam districts and identified movable assets worth `13.50 crore.
In July 2023, ED had also provisionally attached 105 immovable properties and other assets worth Rs.73.74 crore belonging to the Madhucon Group. At that time, the ED sleuths had conducted multiple searches and recorded multiple statements of promoters, sub-contractors, bankers, engineers, and forensic auditors.
The ED during investigation found that Madhucon promoters siphoned off the loan funds of this project and misused Rs.75 crore worth material advances allegedly on the direction of Nageswara Rao. Till date the Enforcement Directorate has identified the diversion of more than `362 crores from the bank loan obtained by Ranchi Expressways Limited with Nageswara Rao’s alleged involvement.
