₹310 Crore Loan Default: Authorities Begin Auctioning Ex-MP Butta Renuka's Assets

The process of auctioning the assets of former YCP MP Butta Renuka, who failed to repay a loan of Rs. 310 crores borrowed from LIC HFC, a government insurance company, has begun. Renuka and her husband Neelakanth jointly took the loan in 2018 for a period of 15 years. The loan was utilized for operations by Butta Infrastructure Private Limited, Butta Convention Services Limited, and Meridian Edutech Services. For five years up to 2023, they regularly paid installments amounting to nearly Rs. 40 crores. However, subsequent payments were stopped. As of now, approximately Rs. 340 crores, including principal and interest, remain unpaid. 

Due to the increasing burden of interest, they requested that some of their assets be sold to reschedule the loan. However, as this proposal violated the loan terms, HFC did not accept it. According to the loan agreement, monthly installments of Rs. 3.4 crores were required. Due to the heavy burden, they proposed starting with a smaller amount and gradually increasing the repayment sum, but this too was rejected by HFC. 

In this context, LIC HFC approached the NCLT (National Company Law Tribunal) after the installment payments halted. The case is currently pending. In accordance with the loan terms, a property measuring 5,000 square yards located in Hyderabad’s Banjara Hills was put up for auction at Rs. 145 crores, but no one came forward. Similarly, there was no response for the auction of Butta Convention Center, which spans 7,205 square yards in Madhapur. With this, authorities are planning to make another attempt at auctioning these assets.