Nonpayment of Rs 2.51 Cr: TSRTC seizes former BRS MLA Jeevan Reddy’s mall in Nizamabad
The TSRTC has issued more than 20 notices for payment of dues in the last five years
By Sistla Dakshina Murthy Published on 17 May 2024 6:03 AM GMT
Hyderabad: Telangana State Road Transport Corporation (TSRTC) seized Jeevan Reddy Mall and Multiplex in Nizamabad district for nonpayment of Rs 2.51 crore lease dues.
The property is owned by former BRS MLA from Armoor A Jeevan Reddy.
According to the TSRTC officials, due to non-payment of arrears as per orders of the Telangana High Court, the TSRTC has terminated the lease agreement with Vishnujith Infra Developers Pvt Limited. Around 7,059 square yards of land belonging to the RTC was leased to Vishnujith Infra Developers under Build Operate Transfer (BOT) on June 1, 2013 for 33 years.
In 2017, Rajita Reddy, wife of former MLA Jeevan Reddy, took over Vishnujith Infra Developers Pvt Limited and named the shopping mall Jeevan Reddy Mall and Multiplex. The stalls in it were leased out to third parties. The former MLA’s family did not pay the rent on time to the TSRTC as per the contract. Till October 2023, Jeevan Reddy’s family owed Rs 8.65 crore to the TSRTC.
After serving the notices, Jeevan Reddy's family paid Rs.1.50 crore in October 2023. After sending show cause notices, Rs 2.40 crore was paid in installments in December 2023. The former MLA's family approached the Telangana High Court challenging the show cause notice. After the High Court issued an interim order to pay the dues to TSRTC, two crores were paid in installments in January and February this year.
On March 27, the High Court gave clear instructions to Jeevan Reddy's family to pay all the dues in this case within a month. If the dues are not paid, the TSRTC has been directed to take action as per the rules. The former MLA's family has not paid the entire dues that are overdue for a month. So far, rent arrears of Rs.2.51 crores are pending. The TSRTC has issued more than 20 notices for payment of dues in the last five years, the officials said.
“With a lack of proper response from Jeevan Reddy's family, the TSRTC took over the building after giving a termination order to Vishnujith Infra Developers Pvt Limited. TSRTC is a people's organization. The Corporation does not compromise on rent arrears. We are collecting rent arrears as per the rules,” said TSRTC managing director VC Sajjanar.
