Hyderabad: The Telangana High Court has considered the Enforcement Directorate’s (ED) charge sheet against Madhucon Projects, linked to former BRS MP Nama Nageswara Rao, in a money laundering case.
The Special Court (Prevention of Money Laundering Act), Hyderabad, took cognisance of the complaint on Saturday, August 31.
The ED alleges that the company took a Rs. 1,030 crore loan for a 4-lane highway project but diverted Rs. 365 crore through shell companies. Despite receiving the full loan, the construction was incomplete. The ED has also seized Rs. 96.21 crore from the company’s assets, attached 105 properties, and recovered Rs. 34 lakh.
An investigation was launched following an FIR and chargesheet against Ranchi Expressways Limited (REL). The National Highways Authority of India (NHAI) had awarded a project to Madhucon Project Limited for the four-laning of the NH-33 Ranchi-Rargaon-Jamshedpur section.
To execute this project, the Madhucon Group formed a Special Purpose Vehicle (SPV), Ranchi Expressway Limited.
The investigation reportedly uncovered that REL secured ₹1,030 crore in loans but failed to complete the project despite drawing the entire loan amount. They falsified maintenance and progress reports to claim inflated expenses. As a result, the loan account turned into a non-performing asset (NPA).
It was also allegedly found that the promoters of Madhucon Group siphoned off loan funds through the SPV, diverting them to shell entities and sub-contractors under their control, with ₹75.50 crore being funneled back to the group. Additionally, they took large advances from Madhucon Project Limited and rerouted these funds on the pretext of equipment and labor usage, the ED says. The investigation identified a diversion of ₹365.78 crore in loan funds
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