Rayapati Samba Siva Rao, former TDP MP has once again landed in trouble for alleged default of bank loans. The assets of Transstroy India Limited, to which Rayapati Samba Siva Rao, MD Sridhar and five others are the guarantors, are going to be auctioned by the lending bank, Central Bank of India. Transstroy owes Central Bank of India Rs 452.41 crore in the form of loan debts and due to increase in defaulted repayment of these loans, the lending bank has initiated the requisite process for the auctioning of the company’s mortgaged assets on August 18. Central Bank of India has made an announcement to this effect. The bank announced August 14 as the last date for filing the bids to take part in the auction.
Transstroy owes Central Bank of India a total loan amount of Rs 452.41 crores as on January 9, 2017. Before this, a CBI case has already been registered against Rayapati Sambasiva Rao for allegedly defrauding Canara Bank in three states, Andhra Pradesh, Telangana and Karnataka, to the tune of Rs 300 crores. Apart from these bank debts, Transstroy has secure massive-scale loans to the tune of Rs 3,694 crores from various other banks.