Khammam MP Nama Nageshwara Rao to appear before ED on Jun 25

"The issue has been referred to the Arbitration following which the Arbitration Tribunal was constituted on November 11 last year and the proceedings are in progress," the Khammam MP said.

Hyderabad: Khammam MP Nama Nageshwara Rao on Saturday stated that he would appear before the Enforcement Directorate on June 25, as per the summons issued by the latter and extend complete cooperation to the ED and other investigating agencies probing the alleged bank fraud of Rs 1,064 crore. He made it clear that he does not hold any executive positions in Madhucon Group of Companies which were named in the alleged fraud.

Speaking to mediapersons here on Saturday, Nageshwara Rao said Ranchi Expressways Limited Company was formed as a special purpose vehicle in March 2011, and was awarded a contract for four-laning of Ranchi-Jameshedpur Section from 114 km to 277.4 of National Highway-43 in Jharkhand on DBFOT (Design-Build-Finance-Operate-Transfer) basis.

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He claimed that the National Highway Authority of India (NHAI) awarded the contract, but failed to fulfill its contractual obligations and even took a U-turn by terminating the contract without following the terms of contract, putting the Concessionaire (Ranchi expressways Limited Company) to material loss and damages.

“The issue has been referred to the Arbitration following which the Arbitration Tribunal was constituted on November 11 last year and the proceedings are in progress,” the Khammam MP said. He stated that the banks which funded the project, had complete control over the Escrow Account from which all the payments were made and ruled out diversion of the funds from the account illegally. He stated that he was being dragged into the issue unnecessarily

Responding to a question, Nageshwar Rao said Chief Minister K Chandrashekhar Rao and people of Khammam Parliamentary constituency were his strength. He stated that he will continue to serve the people on behalf of TRS party.

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