ED Attaches Property Worth Rs. 80 Crore Of Khammam MP

In a major development, the Enforcement Directorate (ED) has provisionally attached 20 immovable properties and other assets worth Rs 80.65 crore belonging to TRS MP Nama Nageswara Rao and his family members, in a money-laundering case.

The probe is in connection with Madhucon Projects Limited, Ranchi Expressway Ltd, and its directors and promoters under the provisions of the PMLA Act 2002.

Rao is a director and promoter of the Madhucon group of companies, and a personal guarantor to the bank loan defaulted on by the company.

The ED had also attached the registered office of the Madhucon group of companies, and a residential property at Jubilee Hills, an ED press release said.

"The ED has identified and attached immovable assets of Rs. 67.08 crore in Hyderabad, Khammam and Prakasam district, and movable assets of Rs. 13.57 crore including shares of Nama Nageswara Rao and his family members in Madhucon Projects Ltd, Madhucon Granites Limited and other Madhucon group companies, totalling Rs. 80.65 crore," the release said.

Earlier in July 2022, the ED had provisionally attached 105 immovable properties and other assets worth Rs. 73.74 crore belonging to the Madhucon group of companies and its directors and promoters, which included the properties of Madhucon Projects Limited and group companies, Nageswara Rao, and other promoters and directors of the company, after conducting multiple searches and recording multiple statements of promoters, sub-contractors, bankers, engineers, forensic auditors etc.

The ED said that its investigation had revealed that the Madhucon group promoters had siphoned off loan funds by taking the entire EPC contract from its SPV, and then taking huge mobilization and material advances, but instead of using those advances for the work, using it in their other projects.

Also, direct cash of Rs. 75.50 crore was generated by paying money and then receiving the amount back through six shell entities (M/s Usha Projects, M/s Shree BR Visions, M/s Sri Dharma Sastha Constructions, M/s Sree Nagendra Constructions, M/s Ragini Infrastructure and M/s Varalakshmi Constructions) which were completely under the control of their chairman Nageswara Rao and Nama Seethaiah, the ED said.