Vizag: In a major loan recovery operation, the Indian Bank’s Vizag branch has seized the properties of Andhra Pradesh Human Resources Development Minister Ganta Srinivasa Rao in a default case.
Ganta was the guarantor for a loan of Rs141 crore taken by Pratyusha Resources & Infra Ltd after its incorporation in 2005. He was one of the directors of the company when it was launched along with his close family members – Paruchuri Venkata Bhaskara Rao, Raja Rao, Venkaiah Prabhakar Rao, Kondaiah, Balasubramanyam and Narne Amulya. The company raised a loan of Rs141.68 crore for its expansion. The properties of Ganta and other directors were put as security for the loan.
After taking the loan, the company did not do any major business activity and a state government project was cancelled due to some reasons. The company did not pay a single instalment after taking loan and the dues have increased to Rs196 crore. The bank had issued notices but there was no response from the company or the guarantors.
Finally, the bank seized the properties of the guarantors that include the Minister in December third week.
Speaking to Sakshi, the Minister said he is only a guarantor and not a defaulter, but will try to convince the company directors to repay the dues.
written by saiprasad
source by sakshi.com