Butta family's properties in Hyderabad are up for e-auction by LICHFL
The Butta family had taken a loan of 340 crore from LICHFL for their business activities a few years ago; however, they suffered heavy losses during the Covid pandemic
image for illustrative purpose
Hyderabad: LIC has announced the auctioning of properties owned by industrialist turned politician and former MP Butta Renuka, who is presently contesting as a YSR Congress party candidate from Yemmiganur constituency.
LICHFL issued a newspaper notification for the e-auction of properties belonging to Butta Infrastructure Pvt Ltd, Meridian group of educational institutions, and other properties in Hyderabad on May 6.
According to sources, the Butta family had taken a loan of 340 crore from LICHFL for their business activities a few years ago; however, they suffered heavy losses during the Covid pandemic. Due to the mounting loans and interest, LICHFL decided to auction the mortgaged properties.
LICHFL moved the National Company Law Tribunal stating that the Butta family lost the right over the properties in 2017 when the registered lease deeds were cancelled. Since September 2019, Butta has been treated not as an owner but as a tenant.
LICHFL mentioned that the YSRCP leader has not surrendered the vacant possession of leasehold properties in Banjara Hills and Madhapur to LICHFL. Therefore, she is liable to pay damages until she vacates and delivers vacant physical possession of these properties.
Although LICHFL waived rent until March 2021, the Butta family did not pay rent even after that. The company appointed a liquidator to liquidate the properties and pay the rent. As of 2022, the outstanding lease rental dues amounted to Rs 281.67 crore.
The legal counsels of the Butta family stated that LICHFL cannot auction the properties until the issue is settled by the NCLT. "We shall approach the court to get the auction stalled," the lawyer said.
