The minister appeared before the court, two days before a deadline granted by the Hyderabad HC

Union Minister Y S Chowdary appears before Hyd court in loan default caseImage: Facebook/Y S Chowdary
news Tuesday, May 03, 2016 - 07:51

Union minister Sujana Chowdary on Monday appeared before a Hyderabad court in connection with a criminal complaint filed by Mauritius Commercial Bank Ltd over alleged loan default.

The Times of India reported:

Earlier following the ministers non-appearance, the court issued a non-bailable warrant against him. The minister approached the high court challenging the same. The HC while recalling the warrant however directed the minister to make his first appearance before the trial court on May 4.

The minister appeared before the court, two days before the deadline.

Mauritius Commercial Bank Ltd had earlier 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.

Chowdary has 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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