Judge Upholds Oversight of US Consulate Builder in Milan

A Milan court judge confirmed the placement of Caddell Construction's Italian unit under judicial administration following a probe into worker exploitation at the new U.S. consulate site. The ruling cited evidence of underpaid Indian workers facing exhausting shifts and unsafe conditions.

A Milan judge upheld judicial control over the Italy unit of Caddell Construction following a labor probe involving a $210 million consulate project. The ruling follows a multi-year crackdown on labor exploitation across several sectors in the region. For investors, the probe highlights rising regulatory risks in European infrastructure projects and has delayed completion to 2028.

Milan prosecutors imposed the emergency measure in late May during a crackdown on labor exploitation. A 38-page ruling by a Milan judge described the treatment of workers as a corporate practice rather than an occasional initiative.

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