Bankruptcy petitions filed against T Subbarami Reddy, wife over Rs 600 cr loans
A series of bankruptcy petitions were filed against former Union minister and senior Congress leader Tikkavarapu Subbarami Reddy in the Hyderabad
HYDERABAD: A series of bankruptcy petitions were filed against former Union minister and senior Congress leader Tikkavarapu Subbarami Reddy in the Hyderabad bench of National Company Law Tribunal (NCLT) over the nonpayment of loans received from various banks by Gayatri Projects Limited, a company that he owns.
The petitions were filed by lender-banks and financial institutions (operational lenders) who assisted in the management of the Gayatri Projects Limited that failed to repay loans of more than Rs 600 crores. Of this, the company owes Rs 400 crores to Bank of Baroda while it defaulted on the repayment of a loan of Rs 240 crore secured from the State Bank of India (SBI).
The Bank of Maharashtra, another lender, in its petition, sought to initiate bankruptcy proceedings against T Subbarami Reddy, who is the guarantor for the loan taken by his company Gayatri Projects Limited. The bank also sought directions for immediate repayment of the loan. Besides Subbarami Reddy, petitions were also filed separately against his wife Indira, relatives and close associates J Sushila Reddy, T Sarita Reddy, TV Sandeep Reddy, G Shivakumar Reddy, G Sulochana, and others.
The NCLT on Saturday started hearing the petitions filed by Bank of Baroda, SBI, and IL & FS. After hearing the arguments of both sides, the bench adjourned the verdict.