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LIC gets ready to auction Butta Renuka assets!

LIC gets ready to auction Butta Renuka assets!

The Life Insurance of India Housing Finance Ltd (LICHFL) has announced auctioning of prime properties belonging to industrialist-turned-politician and former MP Butta Renuka, who is presently contesting as YSR Congress party candidate from Yemmiganur constituency.

The LICHFL issued a newspaper notification seeking to e-auction the properties of Butta Infrastructure Private Limited, Meridian group of educational institutions and other properties in Hyderabad on May 6.

According to sources, the Butta family took a loan of Rs 340 crore from LICHFL for their business activities a few years ago; but they suffered heavy losses during the Covid pandemic.

As the loans and interest thereon are mounting, the LICHFL decided to auction the properties mortgaged with it.

The LICHFL, in fact, moved the National Company Law Tribunal, saying the Butta family ceased to have the right over the properties in 2017 itself, when the registered lease deeds were cancelled.

As such, Butta was treated not as owner, but only as a tenant with effect from September 2019.

The LICFL said the YSRCP leader has not surrendered the vacant possession of leasehold properties situated at Banjara Hills & Madhapur to the Corporate Debtor (LICHFL) and hence, she is liable to pay damages till it vacates and delivers vacant physical possession of the above properties.

Though the LICHFL waived rent till March 2021, the Butta family did not pay the rent even after that. The company appointed a liquidator to liquidate the properties and pay the rent. As on 2022, the outstanding lease rental dues amounted to Rs 281.67 crore.

The legal counsels of the Butta family say the LICHFL cannot auction the properties till the issue is settled by the NCLT.

“We shall approach the court to get the auction stalled,” the lawyer said.


Tags: Andhra Pradesh Butta Renuka LIC LICHFL