Bandla Ganesh To Lose ₹8.5 Cr Property?

Film producer Bandla Ganesh faced a legal problem when the Telangana High Court decided to keep the Union Bank's auction of his family's property in Hyderabad.The court ignored a previous ruling from the Debt Recovery Tribunal that had stopped the auction.

This issue started because of a loan taken by Sri Parameswara Poultry Farm Private Limited.

Bandla Ganesh and his family were guarantors for that loan, which led to their property being involved in the recovery process.

The bank claimed that the property was taken over in 2019 under the SARFAESI Act and was sold in 2022 for Rs 8.51 crore.

The bank wanted to use this money to settle the loan.

The bank said that Bandla Ganesh and his family had agreed to stop all legal fights as part of the settlement.

But they later went to the Debt Recovery Tribunal, which ruled in their favor and stopped the auction.

The High Court agreed with the bank's point of view.

It said that the auctioned property belonged to the guarantors, not the company that was facing insolvency.Because of this, the rules about insolvency didn't apply to the property.

With this decision, the High Court allowed the auction to go through and canceled the earlier decision that helped Bandla Ganesh and his family.

This means the bank has won the legal case.