LIC Housing Finance Ltd has initiated steps to auction properties linked to former Member of Parliament Butta Renuka following a significant loan default that has drawn widespread attention in financial and political circles. The move comes after recovery proceedings were triggered over unpaid dues that have reportedly accumulated to a substantial amount including principal and interest.
According to public notices issued by LIC Housing Finance Ltd, the action concerns assets associated with Butta Renuka and her husband Neelakantha Shiva Butta. The couple had availed large loans for their business ventures, but repayments reportedly stalled, leading to mounting liabilities. With accrued interest and related charges, the total outstanding amount is said to have risen sharply over time.
Among the properties listed for auction is a prominent real estate asset in Hyderabad that houses a well known educational institution. The property is considered one of the key assets in the recovery process and has attracted attention due to its location and valuation. The e auction process has been scheduled with specific timelines for submission of bids, as per the lender’s official notice.
Butta Renuka, who previously represented Kurnool in the Lok Sabha, has been a notable political figure in Andhra Pradesh. Over the years, her family has also built a diverse business portfolio spanning education, real estate, hospitality and other sectors. The current development highlights the financial stress that can arise when large scale borrowings are not serviced as agreed.
Recovery proceedings of this magnitude are relatively uncommon in the housing finance segment, particularly when they involve high profile individuals. Financial institutions typically exhaust various options including negotiations and legal remedies before moving to auction secured assets. The decision to proceed with a public auction indicates that the lender is pursuing statutory recovery mechanisms to safeguard its interests.
The case has sparked discussion about corporate governance, credit risk management and the broader implications for financial discipline. It also underscores the importance of responsible borrowing and timely repayment, especially when substantial sums and public facing enterprises are involved.
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