The HC also ordered Chowdary to present himself before the trial court on May 5

Relief to minister Y S Chowdary in loan default case as HC orders recall of warrantImage: Wikimedia Commons/Cephas 405
news Wednesday, April 13, 2016 - 07:04

The Hyderabad High Court on Tuesday ordered a recall of the non-bailable warrant issued by a local court against Union Minister Y S Chowdary in connection with a criminal complaint filed by Mauritius Commercial Bank Ltd over alleged loan default.

Justice Raja Elango also ordered Chowdary to present himself before the trial court on May 5.

Afterwards, he need not attend the trial court untill the disposal of the petition he has filed in the High Court, the Judge said.

The XII Additional Chief Metropolitan Magistrate court had on April 7 issued the warrant against Chowdary, the Union Minister of State for Science and Technology, after the Mauritius Commercial Bank Ltd had filed a complaint in the court accusing him and others of "defaulting in repayment of loan of Rs 106 crore."

The bank had submitted that it had lent Rs 100 crore to Hestia Holdings Ltd, a subsidiary of Sujana Universal Industries Ltd, and had secured a decree from a London court.

According to the counsel of the bank, the company - Sujana Universal Industries Ltd - stood as guarantor for the loan availed for Hestia Holdings Ltd, which is its subsidiary, and the company has to repay Rs 106 crore to it.

Subsequently, the bank had filed several litigations against Sujana Universal Industries Ltd and Chowdary had been asked to remain present in the court after issuing summons based on the criminal complaint.

However, Chowdary "failed" to remain present before the court after which an NBW was issued and the matter was posted for hearing on April 26.

Challenging the issuance of NBW, Chowdary had approached the Hyderabad High Court and filed a petition seeking that the NBW be recalled, said Chowdary's counsel Ravi Shankar Jandhyala.

The High Court will hear his petition next on June 16, Jandhyala added.

Chowdary had also claimed that though he was the founder of the company he had relinquished his shareholding and directorship and that he had not taken the loan.

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