Sat Apr 26 01:10:00 UTC 2025: **Former YSRCP MP Butta Renuka’s Assets Face Auction Over Unpaid LIC Loan**
Kurnool, [Date]: Former YSR Congress Party (YSRCP) Member of Parliament Butta Renuka and her husband, Neelakanta, are facing the potential auction of their assets due to an unpaid loan of ₹310 crore from LIC HFL, a subsidiary of Life Insurance Corporation of India (LIC).
The couple took out the loan in 2018, with a 15-year repayment period, to fund their businesses: Butta Infrastructure Private Limited, Butta Convention Services Limited, and Meridian Edutech Services. While initial installments were made, payments ceased five years ago despite repeated notices and attempts at negotiation by LIC HFL’s Bengaluru branch.
Approximately ₹40 crore has been repaid, leaving an outstanding balance of roughly ₹340 crore, including principal and interest. Attempts to renegotiate the loan terms, including proposals to sell assets and restructure payments, were rejected by LIC HFL as they violated loan conditions.
The high monthly installment of ₹3.40 crore proved unsustainable, prompting the couple to seek a loan modification. However, this request was also denied.
Consequently, LIC HFL approached the National Company Law Tribunal (NCLT). The case is currently pending. A previous attempt to auction a 5,000 sq. yard property in Banjara Hills, valued at ₹145 crore, and another property in Madhapur failed to attract bidders. A second auction attempt is underway, though low interest is suspected due to the potential legal complications.
First Piper 