A series of bankruptcy petitions were filed against former Union minister and senior Congress leader T Subbarami Reddy in the Hyderabad bench of the National Company Law Tribunal (NCLT) over the nonpayment of loans received from various banks by Gayatri Projects Limited, a company that he owns.
Subbirami Reddy is popular for doing construction projects, giving awards, doing pooja for Lord Shiva and also blessing people in his own way.
His companies have come out with a Public issue also during the boom period and now he is in a financial mess.
The socializer is popular by producing some movies in Tollywood. He has produced a movie called State Rowdy with Chiranjeevi.
The petitions were filed by lender-banks and financial institutions (operational lenders) who assisted in the management of the Gayatri Projects Limited which 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 started hearing the petitions filed by the Bank of Baroda, SBI, and IL & FS.
