Bank to auction the assets of Visakhapatnam North MLA Ganta Srinivasa Rao

Former Minister and Visakhapatnam North MLA Ganta Srinivas Rao is likely to have entered troubled waters in a loan default case. Reportedly, the assets of  Ganta Srinivasa Rao are set to be put on auction by a bank for default of loan repayment by Pratyusha Resources and Infra Private Limited.

As per sources, the Dabagardens branch of Indian bank has published a notification on Monday announcing a flat, in Visakhapatnam North, belonging to Ganta Srinivasa Rao and assets of nine others will go on auction on 20 December as the aforementioned had failed to repay the loan amount, to the tune of Rs 200 crore, despite being served with several notices. It has been reported that the politician had stood as the guarantor for the company to acquire loan from the public sector bank.

While the flat values for about Rs 35 crore, a few others assets of Ganta Srinivasa Rao too likely to come under the bank’s scanner.

The bank had reportedly sent a demand notice to the company on 4 October 2016 after the company had defaulted payment of Rs 141.68 crore. With the interest adding on to make the payable amount over Rs 208 crore as on 7 November, the branch of Indian Bank issued a tender cum auction notice.

Ganta Srinivasa Rao was in the news earlier this month with reports surfacing that he might soon shift loyalties to the BJP. In the Assembly elections of 2019, the Visakhapatnam-based politician had won the North constituency after attaining a slender margin over YSRCP’s KK Raju.