Nama denies wrongdoing, says will cooperate with ED

TRS floor leader in the Lok Sabha Nama Nageswara Rao, who is summoned by the Enforcement Directorate in a case related to bank fraud of ₹1,046 crore, has denied wrongdoing and said he would assist the investigative authorities.

At a press conference here, he said the National Highways Authority of India (NHAI) had delayed the permissions and did not get the environment clearances before handing over the project to Madhucon for laying the 163-km National Highway-33 between Ranchi-Rargaon-Jamshedpur in Jharkhand.

Moreover, the NHAI got approvals for 21% of land transfer though it should have given 80% at least to the company for starting the work. The company was also forced to take up the work despite not fulfilling the criterion for smooth operations. He said the NHAI resorted to breach of the contract and illegally terminated it putting the Madhucon company into financial losses.

However, he would attend the ED questioning and clear their doubts. Madhucon company set up Ranchi Expressway Ltd under special purpose vehicle to take the project in the Build, Operate and Transfer mode at a cost of ₹1,151 crore. Madhucon received ₹1,029.39 crore from a consortium of banks under Canara Bank.

Mr. Nageswara Rao claimed that he was not involved with the day-to-day operations of Madhucon after he came into public life and the company was being looked after by his brothers. He said the company has gained reputation over the last 40 years and it had laid roads on the China border where even state-owned companies could not do.

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Printable version | Jul 24, 2021 2:25:50 PM | https://www.thehindu.com/news/cities/Hyderabad/nama-denies-wrongdoing-says-will-cooperate-with-ed/article34859500.ece

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