Ganta Srinivasa Rao's flat, properties of firm to go under hammer

VISAKHAPATNAM: A property belonging to former minister and Vizag north MLA Ganta Srinivasa Rao will go under the hammer on November 25.The Indian Bank has issued a notification for the e-auction of the flat built on 444 square yards in plot number A/12 under survey number 20 (p) in BS Layout belonging to Srinivasa Rao along with properties registered in the name of Pratyusha Resources and Infra and other directors of the company in a loan default case.

The bank issued auction notice for the sale of immovable assets under the Securitisation and econstruction of Financial Assets and Enforcement of Security Interest Act 2002 read with provision to Rule 8 (6) of the Security Interest (Enforcement) Rules, 2002.The bank has invited tenders, which will be received up to November 23, according to the notification. The tenders will be opened on November 25. The total amount which is due from Pratyusha has gone up to Rs 248.03 crore, including principal, interest and charges. 

Pratyusha Resources and Infra Private Limited, in which Srinivasa Rao had served as director, defaulted on repayment of loan of Rs 141.68 crore. The bank had issued a demand notice on October 4, 2016. The bank issued first e-auction notice as the company defaulted the payment of the total outstanding amount that went up to Rs 208.68 crore on November 7, 2019. However, the auction was postponed following an assurance given by the directors to clear the dues. Since the payment was not made, the bank issued another notification in March this year to e-auction the properties on April 16. However, the auction could not be held due to the lockdown. Later, the bank issued a notification on November 3 to auction the properties on November 25.

Properties belonging to Srinivasa Rao and PV Prabhakara Rao, KB Subrahmanyam, Narni Amulya and Parachuri Bhaskara Rao, all directors of the company, were earmarked for auction by the bank. Assets belonging to the companies such as Pratyusha Resources and Infra, Pratyusha Global Trade and Pratyusha Estates were also attached and put up  for auction.