The recent raids by the Enforcement Directorate on the residences and offices of industrialist-turned-Telangana Rashtra Samithi MP Nama Nageshwara Rao over Rs 1,000 crore bank fraud case, led to the speculations that he might join the Bharatiya Janata Party to get out of the crisis.
So, when Nama called for a press conference at his residence on Saturday afternoon, there was a speculation in the media that he might announce shifting loyalties to the BJP, on the lines of former state health minister Eatala Rajender, who jumped into the saffron party to overcome troubles in the land encroachments case.
However, Nama made it clear to the media persons that there was no question of deserting the TRS or betraying the faith of chief minister K Chandrasekhar Rao.
“The people of my constituency – Khammam know very well about my integrity. I entered politics only to serve people, but not to change parties for business interests,” he said.
He said he would continue to follow the path of the chief minister.
“KCR is my leader and my strength. The people of Khammam are my force. Whatever troubles I might face, I will continue to sail with KCR,” Nama said.
He said he had relinquished his executive positions in the companies – Madhucon Group in 2004 and 2009 itself after he entered politics and contested the Lok Sabha elections.
“Since then, all the companies are being managed by my family members with the assistance of professionals and independent boards,” he said.
On the recent ED searches on Madhucon’s associated venture Ranchi Expressways, Nama said the company was awarded contract for four-laning of Ranchi-Jamshedpur Expressway for 183 km in Jharkhand from National Highway Authority of India (NHAI) in April 2011.
However, the project got delayed due to inordinate delay in handing over of the land (Right of Way) and obtaining of environmental and forest clearance by the NHAI.
“Out of the total project cost of Rs 1,655 crore, the company’s equity was Rs 463 crore, but it had brought in Rs 485 crore, whereas bankers released only Rs 652 crore,” he said.
Due to delays and defaults on the part of NHAI, the company suffered a lot.
“There was no default or siphoning of funds of the project, because the money was in the escrow account over which only banks have the authority to withdraw,” he said.
“Since the issue is sub judice, I cannot comment more. We shall cooperate with the investigating authorities,” Nama added.