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Former YSRCP MP Butta Renuka and her husband Neelakantha Shiva are facing auction proceedings over massive loan defaults, with LIC Housing Finance Limited (LICHFL) initiating fresh steps to recover dues.
In 2018, the couple secured loans worth approximately ₹310–340 crore from LICHFL through their companies:
Butta Infrastructure Pvt Ltd
Butta Convention Services Pvt Ltd
Meridian Edutech Solutions Pvt Ltd
The loan tenure was 15 years. Initially, around ₹40 crore was repaid. However, repayments stopped after some time, and with accumulated interest, the outstanding amount reportedly surged to ₹782.07 crore.
Monthly EMIs were said to be around ₹3.40 crore, which later became financially burdensome. Attempts were made by the borrowers to restructure the loan and liquidate certain assets, but LICHFL did not agree to the revised proposals.
LICHFL’s Bengaluru branch has now issued a fresh auction notice for mortgaged assets, including:
3,833.28 square yards of land in Survey No. 1009, Phase-6, KPHB Colony, Hyderabad
The Meridian School building located on the same property
The reserve price for the property has been fixed at ₹65 crore.
Last date for submission of e-bids: March 23
E-auction date: March 24
This is reportedly the 13th attempt by LICHFL to auction the property, as earlier efforts did not attract buyers.
The matter is also pending before the National Company Law Tribunal (NCLT). LICHFL had approached the tribunal after the loan account turned into a non-performing asset (NPA).
According to available information:
Certain lease agreements linked to the mortgaged properties were questioned.
Issues relating to pre-existing leases allegedly impacted the loan security.
Corporate Insolvency Resolution Process (CIRP) proceedings were initiated.
There have been allegations in legal filings regarding irregularities, though no conclusive findings of fraud have been established publicly.
Butta Renuka, who represented Kurnool in the Lok Sabha between 2014 and 2019, built a business portfolio that included convention centers and educational institutions.
Industry observers note that:
The COVID-19 pandemic severely impacted the events and education sectors.
Convention centers remained shut.
Schools faced prolonged closures.
Revenue streams declined sharply.
This financial stress is widely seen as a key factor behind the repayment default. However, political and business circles have also speculated about management decisions and strategic financial handling. At present, the issue appears largely rooted in financial distress rather than proven wrongdoing.
With the fresh auction notification now issued, all eyes are on the March 24 e-auction. Previous auction attempts failed due to lack of bidders. Whether this round attracts buyers will determine the immediate financial recovery path for LICHFL.
The case has sparked considerable discussion in political and business circles in Andhra Pradesh and Telangana, given Butta Renuka’s political background and business prominence.
Further developments will depend on:
The outcome of the auction
Ongoing NCLT proceedings
Any potential settlement or restructuring discussions between the parties
The coming weeks could prove decisive in this high-profile financial dispute.
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