Nama Nageswara Rao Clarifies That He Will Cooperate For ED Investigation

It is learned that TRS MP Nama Nageswara Rao has been accused of misusing bank loans taken for the Madhukan Company's National Highway project in Jharkhand. Nama is scheduled to appear before the court on June 25 in connection with the case. MP Nama Nageswara Rao made interesting remarks in this regard on Saturday.

He doled out, "Madhukan company was started 40 years ago. I worked hard to develop the company. The company is laying roads even in areas that are at least inaccessible on the China border and we cheated no one. This organization is being run under my two brothers. Even though having NHAI approvals, the company got only 21 per cent of lands instead of 80 per cent. I am not an MD of these companies. I have faith in the judiciary. As ED called me to attend the investigation on 25th, I will cooperate with all. I have always been honest and will serve the people in the same way in the coming days too. CM KCR supported me and made me MP. My strength is CM KCR and Khammam people.

Going with the details of the case, in 2011, Madhukan company bagged the deal of the 163 km National Highway-33 between Ranchi-Rargaon-Jamshedpur in Jharkhand. It bagged the deal in Build, Operate and Transfer method at Rs. 1,151 crore. Ranchi Expressway Limited has been set up for this purpose under the Special Purpose Vehicle. Thus, Madhukan company received Rs 1,029.39 crore from a consortium of banks under Canara Bank.

The Jharkhand High Court has directed the Serious Fraud Investigation Office (SFIO) New Delhi to find out the truth behind the allegations that Madhukan company is facing. The SFIO investigated and reported that Rs 264.01 crore had been misused from the loan taken by Madhukan. The CBI has registered a case against Madhukan Group and other companies too. An entire investigation has been launched into the case under the Money Laundering Act, alleging that huge sums of money were smuggled abroad.