Addressing a press meet at Telangana Bhavan, the BRS headquarters, former MLA A. Jeevan Reddy alleged that the resort properties, spread over 180 acres, for which the original promoters had accumulated loans totalling Rs 2,221 crore, was obtained for a throwaway price of Rs 327 crore by Jalavihar Entertainment Consortium, a front company for Ranjith Reddy.
Hyderabad:The BRS on Friday alleged that a serious financial fraud had taken place in the transfer of ownership rights of Leonia Resorts, saying Congress leader and former MP G. Ranjith Reddy was at the centre of a scam running into thousands of crores of rupees.
Addressing a press meet at Telangana Bhavan, the BRS headquarters, former MLA A. Jeevan Reddy alleged that the resort properties, spread over 180 acres, for which the original promoters had accumulated loans totalling Rs 2,221 crore, was obtained for a throwaway price of Rs 327 crore by Jalavihar Entertainment Consortium, a front company for Ranjith Reddy.
Jeevan Reddy alleged that Ranjith Reddy using his political influence and contacts ensured that there were no other bidders for taking over the property after the National Company Law Tribunal (NCLT), as part of the insolvency proceedings of the original promoter Leo Meridian Infrastructure Projects & Hotels Ltd.
“Two others who wanted to place bids for the resorts whose market price could be around `10,000 crore, were forced to withdraw their bids after the NCLT called for tenders leaving only Ranjith Reddy’s front company in the fray, which ultimately got the property. This is a huge financial scam that caused losses to several public sector banks including SBI, Bank of Baroda, Canara Bank, Union Bank of India, and Indian Overseas Bank among others,” Jeevan Reddy alleged.
Jeevan Reddy said the property was right next to the Outer Ring Road in Shamirpet for which the banks gave loans totalling Rs 2,221 crore, would be at least worth Rs 10,000 crore if the market value were to be taken into consideration. “We demand that the ED and CBI probe this scam. This is public money from the banks that is at stake,” Jeevan Reddy said.
