The Enforcement Directorate (ED) raided the residences and offices of TRS MP Nama Nageswara Rao, his Madhucon Group of companies, and the directors of Ranchi Expressway in connection with a Rs 1,064 crore bank fraud case. Sources informed the media that searches were conducted at six locations in Hyderabad including the Madhucon Infra office in Jubilee Hills, CMD of Ranchi Expressway K Srinivasa Rao, residences of Nageswara Rao, and directors N Seethaiah and N Prithvi Teja, son of Nageswara Rao. The ED is investigating the case for money laundering under the Prevention of Money Laundering Act. The MP is a personal guarantor for the loans obtained from several banks. In March 2019, the Central Bureau of Investigation (CBI) had filed a case against Ranchi Expressway and its directors, Madhucon Group of Companies, and officials of Consortium of Banks led by Canara Bank for alleged irregularities in the Ranchi-Jamshedpur (NH-33) project. Madhucon was given a contract to execute a road project about four-laning of a 163 km stretch on NH-33 connecting Ranchi with Jamshedpur. The project was awarded to Madhucon Projects by the National Highways Authority of India (NHAI) in March 2011. Madhucon later floated a special purpose vehicle, Ranchi Expressway Ltd, for executing the project on design-build finance-operate and transfer model. The banks, led by Canara Bank, agreed to fund Rs 1,151 crore to Madhucon Group with Rs 503 crore from promoters to complete the project. The Serious Fraud Investigation Office (SFIO) report has claimed that the promoters round-tripped Rs 50 crore, alleged Rs 98 crore towards maintenance, used Rs 94 crore of mobilisation advance, and diverted Rs 22 crore and thus, misappropriated Rs 264 crore. The CBI claimed that there was no progress in the project work and the loan turned into a non-performing asset (NPA) in 2018. NHAI terminated its agreement with Madhucon Projects and forfeited Rs 73 crore. Image Source Also read: ED investigates Rs 2,000 cr loan from Piramal Group to Omkar Also read: Maharashtra police lodges FIR against Indiabulls Group