Vijayawada/Hyderabad: A property belonging to Prasad V. Potluri led PVP Capital in Chennai is all set to be auctioned by Canara Bank to recover a defaulted loan of Rs 148.90 crore. PVP Capital is a subsidiary of Mr Prasad’s flagship company PVP Ventures Ltd.
According to the state-run bank, PVP Capital borrowed `148 crore by offering a 2,62,160 square feet property owned by its parent firm PVP Ventu-res in Chennai as collateral security.
Mr Prasad, and his Jhansi Sureddy stood guarantee to the loan, while Picture House Media Limited and PVP Ventures offered corporate surety.
Mr Prasad had unsuccessfully contested the recent Lok Sabha elections on a YSRC ticket from Vijayawada.
According an affidavit filed by Mr Prasad for contesting elections, he is facing charges of money laundering (FIR No. ECIR No. 02/HZO/2013) filed by the Enforcement Directo-rate invoking Sections 3 and 4 Of Prevention of Money Laundering Act 2002.
Canara Bank will auction a parcel of land in Chennai belonging to PVP Capital Limited, PVP Ventures chairman Prasad V. Potluri and his wife Jhansi Sureddy (who stood surety), Picture House Media Limited and PVP Ventures Limited (corporate sureties) for a defaulted loan worth Rs 148.90 crore
Asked about the bank decision Mr Prasad told this newspaper: “We have a step-down subsidiary company, a closed business called PVP Capital Ltd. It was a film finance firm for which Canara Bank gave us a credit of Rs 148 crore, The bank took more than 18 months to disperse the funds. By then operations would not be executed as planned. Of the total Rs 148 crore, we paid Rs 45 crore to the bank. We are in discussion on the balance amount."
“The non-payment is due to a business dispute between the company and the bank. The Group have taken 18 loans. All loans have been paid back, barring this case,” said Mr Prasad, who is also known as PVP or Prasad V. Potluri.
In a notice issued by Canara Bank invoking provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act, the lender invited bids for the purchase of the 2,62,160 square feet property at Perumbur in Chennai.
The prospective buyers were asked to pay Rs 9.3 crore as the earnest money deposit (EMD) before 5 pm on August 13.
According to the BSE, the company, which has interests in diverse fields, has a market capitalisation of Rs 48 crore.
The Canara Bank auction notice said: As per reference deed no. 4145/2003 dated 27-09-2003 and 4141/2003 dated 22-10-2013, the assets registered in the name of M/s PVP Ventures Limited are located in Chennai-600011, Perumbur, Stephenson Road, Block No. 8-D (Part) and also in Chennai-Central Registration District of Purasavakkam Sub Registration District, Chennai District, Purasavakkam-Perumbur Taluq, Perumbur Division, Perumbur Village, TS No. 156, East Portion 2,62,160 square feet (24,355,29 square metres) vacant land. Borders: North: Survey No. 156 (Part), South: Stephenson Road, East: Slum Clearance Road, West: Survey No. 156 (Part).”
