The Enforcement Directorate (ED) has filed a prosecution complaint (PC) 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), Hyderabad, took cognisance of the complaint on August 31, 2024. The ED has identified the diversion of loan funds worth ₹365.78 crore.
The investigation was initiated following a FIR and chargesheet registered against Ranchi Expressways Limited (REL) as per which the National Highways Authority of India (NHAI) had awarded project of four-laning of NH-33 on Ranchi-Rargaon-Jameshdpur section to Madhucon Project Limited. A Special Purpose Vehicle (SPV) Ranchi Expressway Limited was incorporated by Madhucon Group, to execute this project.
The investigation revealed that REL obtained loans of ₹1,030 crore from a consortium of banks led by Canara Bank. They could not complete the work despite drawing the entire loan amount. They also managed the maintenance reports and work progress reports to falsely claim higher expenses. The group failed to repay the loans and the loan account turned into NPA.
In addition, the Madhucon Group’s promoters siphoned off the loan funds from its SPV. Loan funds were also diverted to sub-contractors/shell entities controlled by them and cash amounting to ₹75.50 crore was received back from them. They took large advances from Madhucon Project Limited out of the loan funds and then re-routed the funds to Madhucon Group on the pretext of using their equipment and labour. Diversion of loan funds to the tune of ₹365.78 crore has been identified during PMLA investigation.
The ED had earlier conducted searches in the case and seized incriminating evidence and unaccounted cash of ₹34 lakh. It also attached 105 immovable properties and other assets worth ₹96.21 crore belonging to Madhucon Group of companies and their directors.
