Indian Bank seizes HRD Minister Ganta Srinivasa Rao’s properties in Pratyusha company default case

Thursday, December 29, 2016

  • Pratyusha company defaulted in payment of Rs.196.51 crore due to Indian Bank
  • No response to demand notices served
  • Ganta Srinivasa Rao was once a Director of the company stood as security for the company and its directors

Indian Bank has issued notification for taking over the assets of Andhra Pradesh Minister for HRD Ganta Srinivasa Rao along with directors of Pratyusha Resources and Infra Pvt. Ltd. to whom he stood as surety as it defaulted in payment of dues to the Indian Bank.

The Indian Bank has issued notices and press advertisements stating to take over the assets of the minister and other directors following no response was received to the demand notices served to the company on Wednesday.

The Pratyusha Resources and Infra Private Limited was registered under companies Act on August 18, 2005 with registration number 047165. Its registered address is Door No.25/40/12. Ganguavari Street, near Laxmi Talkies, Visakhapatnam. Its authorized share capital is Rs. 500,000,000 and its paid up capital is Rs. 240,671,008.It is involved in Building and repair of ships & boats.

Venkayya Prabhakara Rao Paruchuri, Raja Rao Parachuri are the active directors of the company who are incidentally very close relative of Ganta Srinivasa Rao.

Ganta Srinivasa Rao along with Kondaiah, Balasubrahmanyam, Narne Amulya are the guarantors for Pratyusha Estates Ltd., Pratyusha Trade Private Limited. The company took Rs.141.68 crore loan from Indian Bank as part of the company expansion but failed to pay the instalments. The total amount due to the company had gone to Rs.196.51 crore.

On October 4, the Indian Bank has served a demand notice asking the concerned to pay the dues within 60 days else would seize the assets of the company along with its directors and guarantors. With no response came up from them, the company issued public notices stating to take over the assets of the company and its directors and guarantors.

26 properties including five properties belonging to Ganta Srinivasa Rao and three properties of Parachuri Bhaskara Rao, director of Pratyusha, were attached by the Indian Bank. The seized assets are at various places in Visakhapatnam including at Gajuwaka, Chinagadali, Rushikonda, Madhurawada, Anandapuram, Anakapalli and Kakinada in between December 21 to 26.

Ganta Srinivasa Rao clarifies::Meanwhile, Ganta Srinivasa Rao admitted that he acted as a Director of the company and at present, he had no relation with the transactions of the company. He admitted that he stood as a guarantor to the company. ‘He would talk to the directors of the company over the repayment of the dues’, he said.

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