Megha Engineering Under Watch After Rapid Growth.

Megha Engineering has grown rapidly from a regional contractor into a major infrastructure company. Its revenue jump and growing order book have brought attention to how projects are delivered and managed. Political funding, large government contracts, and some project delays have raised questions among experts. While the company says growth is based on capability, observers are calling for closer checks on compliance, delivery timelines, and long-term stability.

Megha Engineering’s Meteoric Rise Faces Scrutiny Over Delivery and Compliance Issues

Megha Engineering’s rapid rise from a regional contractor to an infrastructure giant faces intense scrutiny over political funding, leadership depth, project failures, and regulatory action, raising serious questions about governance, execution capability, and long-term sustainability.

Megha Engineering & Infrastructures Ltd (MEIL), a Hyderabad-based private infrastructure major, has recorded explosive growth, transforming from a modest fabrication unit into one of India’s largest engineering contractors within a decade.

The company’s revenue surged from ₹5,200 crore in FY2014 to nearly ₹43,000 crore in FY2024, reflecting a compound annual growth rate of approximately 23.5 percent, outpacing several established infrastructure competitors.

Founded in 1989 by engineer P.P. Reddy, MEIL now reports a topline significantly higher than Tata Projects and Afcons Infrastructure, signalling a dramatic reshaping of India’s infrastructure contracting hierarchy.

However, this rapid expansion has intensified scrutiny over MEIL’s project delivery record, governance standards, and compliance practices, especially as it secures increasingly complex and strategically sensitive public-sector contracts.

Political Funding and Contract Awards Under Scanner

MEIL’s political donations through electoral bonds have drawn attention amid wider national debates on transparency and influence in public procurement and infrastructure project allocations.

Available disclosures indicate MEIL donated approximately ₹966 crore through electoral bonds, benefiting multiple political parties including the Bharatiya Janata Party, Bharat Rashtra Samithi, and Dravida Munnetra Kazhagam.

While electoral bond contributions were legal at the time, governance experts argue the scale of such funding warrants closer examination of whether political proximity influenced large project awards.

Industry analysts note that MEIL’s order book expanded sharply during the same period, raising persistent questions around competitive bidding processes, pricing benchmarks, and institutional oversight.

Megha Engineering & Infrastructures Ltd. has not publicly acknowledged any direct linkage between donations and contract wins, maintaining that its growth reflects technical capability and competitive execution.

Leadership Concentration and Institutional Depth Concerns

A closer examination of MEIL’s leadership structure reveals heavy reliance on the founding family, with limited long-term senior management continuity beyond the Reddy circle.

Founder and Executive Chairman P.P. Reddy continues to exercise strategic influence, while Managing Director P.V. Krishna Reddy, his nephew, oversees core operational decision-making.

Family members Sudha Reddy and Rama Reddy Pamireddy also serve as directors, reinforcing concentrated control over governance and executive authority.

Outside the founding group, several senior executives joined only recently, prompting concerns about institutional memory and execution depth amid complex infrastructure assignments.

Key appointments include Ajjarapu Muralikrishna as General Manager in 2023, Sridhar Gadde as Renewable Energy CEO in March 2024, and Salil Mishra’s return as CFO in April 2025.

Santhosh Reddy Chitla assumed the Chief Information Officer role in mid-2024, further underscoring the relatively short tenures across MEIL’s top management cadre.

Experts caution that limited leadership continuity may strain coordination, risk management, and compliance oversight as Megha Engineering & Infrastructures Ltd. expands into high-risk sectors such as nuclear energy.

Project Failures Raise Execution and Safety Questions

Megha Engineering & Infrastructures Ltd. execution track record reveals several high-profile setbacks that continue to influence regulatory and institutional confidence in its operational capabilities.

In 2025, slope protection failures along the NH-66 corridor in Kerala led to partial collapses near Cherkkala and Ramanattukara–Valanchery, exposing serious design and construction lapses.

The National Highways Authority of India subsequently debarred MEIL from bidding for one year and imposed a ₹9 crore penalty following technical assessments.

An earlier underpass collapse at Periya in Kasaragod district during 2022 raised safety concerns, although no punitive action followed the internal inquiry findings.

MEIL also faced judicial scrutiny when the Supreme Court cancelled a ₹14,000 crore MMRDA tender after Larsen & Toubro challenged pricing that exceeded competing bids by nearly ₹4,000 crore.

Legal Investigations and Regulatory Action Mount

MEIL’s electric mobility subsidiary, Olectra Greentech, encountered contract uncertainty after alleged lapses in a ₹10,000 crore electric bus tender triggered internal leadership resignations.

Separately, the Central Bureau of Investigation registered a bribery FIR naming MEIL and one of its general managers in a case involving NMDC and MECON officials.

Investigators alleged illicit payments were routed through company personnel, further intensifying concerns around corporate compliance and ethical safeguards.

In Maharashtra, authorities imposed a ₹94.68 crore fine on MEIL for illegal excavation linked to road construction near pilgrimage routes, with multiple related cases pending adjudication.

Megha Engineering & Infrastructures Ltd. has appealed the penalty, but regulatory scrutiny remains ongoing across several jurisdictions.

Also Read: Ulhasnagar Illegal Construction Puts Ganesh Shimpi in Focus.

Related Article: Megha Infra’s Rise in Maharashtra Sparks Controversy.

Future Outlook Amid Heightened Scrutiny

Despite impressive financial growth, MEIL now faces growing scepticism over governance resilience, safety compliance, and delivery capability across critical infrastructure projects.

As the company undertakes a ₹12,800 crore nuclear power assignment, questions persist over whether current leadership structures can manage technical, regulatory, and reputational risks effectively.

Whether public agencies continue awarding high-value contracts to MEIL, amid intensifying scrutiny, will shape the company’s long-term credibility and sustainability trajectory.

A Sprouts News Special Investigation Team review indicates that MEIL’s future hinges not only on revenue expansion, but demonstrable improvements in transparency, execution discipline, and institutional accountability.

Unmesh Gujarathi, Indian investigative journalist and Editor-in-Chief of Sprouts News, has exposed alleged irregularities involving Megha Engineering & Infrastructures Ltd. and its directors. Sprouts News remains committed to uncovering further alleged financial, corporate, and regulatory violations linked to MEIL and its associated TV9 group.