Madhucon Projects Limited denies violation of rules

Hyderabad: Madhucon Projects Limited has denied the findings of the vigilance and enforcement report on the AP Housing Board project at Kukatpally. The company also said that there were no irregularities or violations or misrepresentations in the conditions of expression of interest (EOI) for the project.

Reacting to a news item published in this newspaper on January 19 with the headline Vigilance for cheating case on Nama, the company denied all allegations including those against its chairman Nama Nageswara Rao.

According to Madhucon, it has all financial and technical capabilities as mentioned in EOI. “In spite of all difficulties, we have been taking various steps to complete the projects since 2004. As such our company having financial and technically capacity and confidence to complete the project. Hence our company never deviated any tender or bid rules in getting the above said project.”

“In response to EOI,” the company said, “10 developers have submitted their proposals. The applications received were evaluated by APHB following the procedure adopted by CRISIL and High Power Committee to government, housing department. It had short listed the seven developers. Of which, only two developers gave their commercial offers. The Madhucon-Binapuri Consortium with share holding composition of 74:26 offered the highest bid of Rs 445 lakh per acre towards development fee. The proposal from the highest bidder was placed before the high power committee, with approved the bid.”

Accordingly, the company said. the letter of award was issued by APHB to our company and development agreement was concluded in 2005. We paid the entire development fee of Rs 40.83 crore towards above said projects. The delay in completion of the projects are because of court cases in existence prior to the allotment and a host of other issues, including that of the Metro project.