Explosive ED Files Prosecution Complaint Against Madhucon Group for Shocking Money Laundering Scandal
The Enforcement Directorate (ED) has filed a prosecution complaint against Ranchi Expressway Limited, Madhucon Projects Limited, Madhucon Toll Highway Limited, Madhucon Infra Limited, and others under the Prevention of Money Laundering Act (PMLA), 2002. The Special Court (PMLA) in Hyderabad recognized the complaint on August 31, 2024. The ED uncovered the diversion of loan funds amounting to ₹365.78 crore.
The investigation was initiated based on an FIR and chargesheet against Ranchi Expressways Limited (REL), revealing that the National Highways Authority of India (NHAI) had awarded a four-laning project of NH-33’s Ranchi-Rargaon-Jamshedpur section to Madhucon Project Limited. A Special Purpose Vehicle (SPV), Ranchi Expressway Limited, was formed by Madhucon Group to undertake this project. REL secured loans totaling ₹1,030 crore from a bank consortium led by Canara Bank but failed to complete the project, instead manipulating maintenance and work progress reports to claim inflated expenses.
Subsequently, the loan account turned into a Non-Performing Asset (NPA) as the group failed to repay the loans. The investigation revealed that the Madhucon Group’s promoters diverted the loan funds from its SPV to sub-contractors and shell entities under their control, receiving back ₹75.50 crore in cash. They also took significant advances from the loan funds under the guise of using company equipment and labor, rerouting the funds back into the Madhucon Group.
During the PMLA investigation, a total of ₹365.78 crore in fund diversions was identified. The ED previously conducted searches, seizing incriminating evidence and ₹34 lakh in unaccounted cash. Furthermore, the ED attached 105 immovable properties and other assets worth ₹96.21 crore belonging to the Madhucon Group and its directors.
Original Story https://www.thehindu.com/news/national/telangana/ed-files-prosecution-complaint-against-madhucon-group-for-money-laundering/article68601339.ece
Category : Telangana
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