YSRCP ex MP Butta Renuka and her husband took a loan of Rs 310 crore from government insurance company LIC’s allied company LIC HFL. As they were unable to repay the money they borrowed, the process of auctioning their properties has begun.
Though they paid installments promptly during the initial days, for the past five years, they paid none. The Benguluru branch sent repeated notices to them and even had talks. But all of it failed.
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The Butta couple took Rs 310 crore loan in 2018 and the repayment period was 15 years. They used the money for Butta Infrastructure Private Limited, Butta Convention Services Limited and Meridian Edutech Services.
They returned Rs 40 crore. But they still owe Rs 340 crore including the interest. As the amount is large, the couple asked for some properties to be auctioned and rescheduling of the loan.
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But HFL officials said this was against norms. Then the Butta couple proposed that the repayment amount be started at Rs 3.4 crore per month and increased gradually. But HFL did not agree for it as rules didn’t permit.
Meanwhile, HFL approached NCLT. As per rules, a property worth Rs 145 crore in Banjara Hills was put up for auction. But there were no takers. There were no takers either for Butta Convention in Madhapur. People are scared to touch properties acquired through auction, it was found.
