Loan default: Reliance to auction two BJP leaders assets

Reliance Asset Reconstruction Company has issued notification for E-auction of the properties of two Bharatiya Janata Party (BJP) leaders Jitta Balakrishna Reddy and Rani Rudrama.

It is understood from the notification that the two BJP leaders have obtained loans worth Rs. 18 crore from The Lakshmi Vilas Bank and failed to repay them forcing the bank to take possession of various properties of the two leaders.

Sources said the two leaders have obtained the loans using their influence as leaders of BJP but ran into rough weather and failed to repay the loans.

Consequently, Reliance Asset Reconstruction Company, which has an assignment agreement with the Lakshmi Vilas Bank has taken possession of the property in September 2021 and after due process, issued notification for E-auction of various assets on ‘as is where is basis’ to recover an amount of Rs. 19 crore.