india

Updated: Nov 19, 2019 05:55 IST

Lingamaneni Estates and Projects Private Limited (LEPL), a real estate major in Andhra Pradesh, in whose bungalow Telugu Desam Party president and former chief minister N Chandrababu Naidu has been staying on the Krishna riverfront at Vundavalli in Amaravati for the last four years, has declared insolvency.

Ramesh Lingamaneni, promoter of LEPL filed an insolvency petition before the National Company Law Tribunal on November 14, indicating that the company was not in a position to repay the loans to its creditors.

The petition to this effect was notified by Interim Resolution Professional M S Mano Ranjani under Regulation 6 of the Insolvency and Bankruptcy Board of India on Sunday. The exercise of insolvency would be completed by May 12, 2020.

The notification called for all the creditors, who had given loans to Lingamaneni Estates, to submit their claims along with proofs on or before November 29.

LEPL, incorporated on March 21, 1996 with its registered office in Vijayawada, has a huge land bank in the capital area of Amaravati and planned several real estate ventures in and around Vijayawada. Lingamaneni also promoted a private airliner – Air Costa with limited operations from Vijayawada airport.

Lingamaneni hit the headlines recently with the YSR Congress party government led by chief minister Y S Jagan Mohan Reddy serving notices on him for demolition of his bungalow on the banks of Krishna river at Vundavalli, which has been leased out to Chandrababu Naidu for his official residence.

Lingamaneni challenged the demolition notice in the high court and the case is presently being heard in the court.

While Lingamaneni was not available for comment and his phone had been switched off, an official in the Andhra government familiar with the development said the LEPL had collected huge amounts from people for development of his real estate projects in and around Amaravati.

“But many of the projects did not take off, mainly because Amaravati capital city project itself has come to a halt. Apparently under pressure from investors, the LEPL declared insolvency,” the official said.