Meridian School property among Rs 782 crore assets linked to ex-Kurnool MP Butta Renuka up for auction

Hyderabad: Acting against alleged loan defaults linked to Kurnool MP and senior YSR Congress Party (YSRCP) leader Butta Renuka, LIC Housing Finance Ltd has reportedly initiated auction proceedings against her family’s properties amounting to Rs 782.07 crore, including interest.

One of the assets up for auction involves a costly property in KPHB, which houses Meridian School.

What are the loans about?

According to official sources, the dues relate to loans availed from LIC Housing Finance Limited (LIC HFL).

With repayments reportedly stalled for a prolonged period and no settlement reached despite prior notices, the lender has accelerated the recovery process through the e-auction of attached assets.

Prime KPHB property includes Meridian School

As part of the recovery proceedings, a prime property in KPHB Phase-6, Survey No. 1009, has been listed for auction.

The land parcel measures approximately 3,833.28 square yards and currently houses a branch of the well-known Meridian School.

Auction on March 24

According to a public notice issued by the LIC Housing Finance’s Bengaluru branch officials have fixed the reserve price for the property at Rs 65 crore.

Interested bidders can submit e-bid forms until March 23, with the e-auction scheduled for March 24.

The development has drawn attention due to the high-profile nature of the property and its location in one of Hyderabad’s prominent residential and commercial zones.

What led to the financial crisis?

Business circles indicate that rapid expansion across multiple sectors within a short span, coupled with inadequate cash flow to service large borrowings, may have contributed to the present situation.

Sources state that the family had earlier approached the Supreme Court after receiving recovery notices from the lender. However, failure to regularise repayments eventually led to the initiation of auction proceedings.

Market analysts also point to fluctuations in the real estate sector and rising interest rates in recent years as additional stress factors impacting leveraged business groups.

The Butta Group’s business footprint

Butta Renuka’s family is known for managing the Butta Group, once regarded as one of the prominent business conglomerates in the erstwhile united Andhra Pradesh.

The group has diversified interests across:

1. Education: Through the Meridian Schools chain, with campuses in key Hyderabad localities such as Banjara Hills, Madhapur and Kukatpally.

2. Automobile sector

3. Hospitality and real estate: Including hotels, guest houses and convention centres under its hospitality vertical.

The KPHB property currently under auction is linked to the education arm of the group, making the development particularly significant.

Political journey of Butta Renuka

Butta Renuka first entered Parliament in 2014 after winning the Kurnool Lok Sabha seat on a YSR Congress Party ticket with a substantial majority.

Subsequently, amid changing political equations, she extended support to the Telugu Desam Party (TDP).

Ahead of the 2019 General Elections, she returned to the YSR Congress Party fold. However, she was denied a party ticket in that election. After YSRCP formed the government, she was appointed as Chairperson of the State Handlooms Corporation during the previous administration.

In recent years, Renuka has maintained a relatively low political profile and did not contest the 2024 elections.