This Article is From Mar 13, 2019

Case Against Ranchi Infra Firm Over 1,000-Crore Loss In Highway Project

The estimated cost of the project, which was supposed to be finished in five years, was Rs 1,655 crores.

Case Against Ranchi Infra Firm Over 1,000-Crore Loss In Highway Project

The NHAI terminated its contract with the company on January 31 this year.

The Central Bureau of Investigation on Tuesday filed a police complaint against the promoters of the Ranchi Expressway Ltd, including Managing Director K Srinivasa, for causing a loss of over 1,000 crore in Ranchi-Jamshedpur (NH-33) project to a consortium of banks led by Canara Bank.

The project to widen NH-33 to four lanes - between Ranchi and Jamesdpur section, stretching nearly 163 kilometers - was given to the Madhucon Project Limited in 2011 by the National Highway Authority Of India.

The estimated cost of the project, which was supposed to be finished in five years, was Rs 1,655 crores.

A consortium of 15 banks led by Canara Bank agreed to fund Rs 1151.60 crore with a contribution of Rs 503.60 crore by promoters. The project began in December 2012.

The Jharkhand High Court intervened in the matter when the project did not finish in five years. The court took suo moto cognizance of the matter and ordered a probe by the Serious Fraud Investigation Office (SFIO).

In its report, the SFIO alleged the Consortium of Banks led by Canara Bank released Rs 1,029.39 crore without verifying the progress of the project, and around Rs 264 crore was diverted and not used for the project. The CBI began a preliminary inquiry based on the SFIO report.

The first information report or FIR also names Ranchi Expressway Ltd directors N Seethaiah, N Prithvi Teja and Madhucon Project Ltd, Madhucon Infra, Madhucon Toll Highway Ltd and an auditing firm, ''Kota and company''. It also names unidentified officials of the consortium of banks. 

The NHAI terminated its contract with the company on January 31 this year.

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