The Hyderabad High Court issued a notice on Tuesday to Andhra's Human Resources Development (HRD) Minister Ganta Srinivasa Rao, and a few others, for allegedly mortgaging government land for a loan of Rs 114 crore.
The court also issued notices to the directors of Pratyusha Resources Infra Private Limited Pvt Ltd, officers of the Indian Bank, Visakhapatnam's Police Commissioner and Collector, and secretaries of the revenue and home departments of Andhra Pradesh.
The bench was hearing a PIL filed by Ajay Babu, a resident of Visakhapatnam district, who claimed that documents were fudged for the loan.
The case pertains to a loan of Rs 114 crore taken by the company from Indian Bank, for which Ganta is reported to have stood as a guarantor.
The petitioner alleged that Ganta had mortgaged government land at the Vemulavalasa village in Visakhapatnam district to avail the loan.
The PIL was filed after the company had failed to repay the loan, following which the bank issued a notification to auction the land.
The court asked for a response and adjourned the case to a later date.
In December last year, authorities of the Indian Bank attached some properties of Ganta as he stood as the guarantor.
At the time, it was reported that around 26 properties including five properties belonging to Ganta were attached by the bank between December 21 and December 26.
However, Ganta stated that he had nothing to do with the company anymore, even though he had stood as a guarantor. He added that he would discuss the issue with the company.