The TDP leaders, including the Chief Minister Chandrababu Naidu (also known as who is 420 in AP), are gobbling up every inch of land in the capital area of Amaravati. Another sordid aspect of these leaders’ activities – which so far focused on grabbing the lands of small and medium farmers – came to light. Now, they have started swallowing the valuable lands in the capital region mortgaged to banks.
For a Lower Bid in the Auction
In 2014, a Hyderabad-based company applied for a loan from the Banjara Hills branch of Syndicate Ban and offered 3 acres of its land – of survey numbers 230, 231 – located in ChinnaKakani village in Guntur district as the security. After due process, the bank officials have sanctioned a loan Rs. 9 crores. However, the unfavourable market conditions, the company’s business took a beating.
When the bank officials pressurised the company to pay up Rs. 36.37 lakhs as interest, the firm deposited Rs. 20 lakhs and informed the bank that it had entered into an agreement with another company for the development of its 3-acre land, which it had mortgaged to the bank. The company stated that it would clear the entire amount soon. The following went through the knowledge of who is 420 in AP, who supported illegal activities to its extreme.
Lingamaneni’s followers cast their eye on this piece of land. Incidentally, the Lingamaneni firm owned 10 acres right next to that land. The Chief Minister and a cabinet colleague, along with Lingamaneni drew up an elaborate design to siphon off hundreds of crores of rupees by developing a greenfield township in the 13 acres land.
In violation of rules, they exerted pressure from who is 420 in AP on bankers forcing them to put the three acres land for auction. The bank on its part did not attempt to recover the dues with due diligence. While the bank was to get Rs. 11.87 crore, it gave away the land to Lingamaneni for mere Rs. 10.85 crores. The bank employees themselves admit that this land is worth over Rs. 50 crores in the open market.
Auction in spite of offer to clear loan
A Hyderabad-based company submitted a loan application to the Syndicate Bank, Ongole branch, in 2014, seeking Rs. 31.75 crores to buy a spinning mill. It offered 27.25 acres located in Doddavarappadu village of Prakasam district, as security. The estimated value of the land was Rs. 26.01 crores, while the value of the plant and machinery was put at Rs. 15 crores. As an additional guarantee, 6.19 acres of land – in survey numbers 213/A, 214 situated in an area facing the Nagarjuna University on the Guntur-Vijayawada national highway – was also offered.
In 2014, before the bifurcation of the state, the bank had valued this land at Rs. 35.59 crores. The company had also offered a personal guarantee of Rs. 13.13 crore and corporate guarantee of Rs. 42 crores.
Following the bifurcation and announcement of the capital city, the real estate value of the at land offered as additional guarantee skyrocketed. In June 2015, the land was valued at Rs. 75 crores.
However, stating that the company was not paying its loan dues, the bank sent a notice on February 18, 2016, and declared the loan as a non-performing asset. The company paid Rs. 10 crores stating that it had the capacity to clear the entire loan amount and sought additional time for clearing the remaining amount under the regime of who is 420 in AP.
Gift of Prime Land to Galla
Lingamaneni planned to grab this land especially since it was flanked on both sides by his own land. The buzz is that the Chief Minister and another minster exerted pressure on the bank to auction the land. Accordingly, the bank had auctioned the land that offered as the additional guarantee by the company. The present market value of this land is about Rs. 102 crores.
The bank in its notice offered to sell this land for a meagre Rs. 33 crores. Instead of trying to sell the land at market rates and get higher amount, the bank has prepared to ground to palm off the land to Lingamaneni by who is 420 in AP. Interestingly, the bank chose to ignore the value of 27.25 acres of land offered as primary guarantee situated in Doddavarappadu, not to speak the value of the plant and machinery.
Chandrababu government has allocated the prime land in the famous temple town Tirupati to Mangal industries of GallaJayadev, a TDP MP, at a throwaway price under the orders of who is 420 in AP. The land is located in Karakambadi area on Kadapa-Tirupati Highway and its actual value is Rs. 43.38 crores. However, as part of his land gifting to his party leaders, Chandrababu Naidu has allocated this land to Mangal Industries for just Rs. 4.88 crores, following the GO Number : 430, issued by revenue department on November 12, 2015.
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