Bandla Ganesh To Lose ₹8.5 Cr Property?

Film producer Bandla Ganesh has suffered a legal setback after the Telangana High Court upheld the Union Bank’s auction of his family’s property in Hyderabad. The court set aside an earlier order of the Debt Recovery Tribunal that had cancelled the auction.

The dispute is linked to the recovery of a loan taken by Sri Parameswara Poultry Farm Private Limited. Bandla Ganesh and his family had stood as guarantors, following which their property was brought under the recovery process.

According to the bank, the property was taken over under the SARFAESI Act in 2019 and auctioned in 2022. The sale fetched Rs 8.51 crore, which the bank sought to adjust against the settlement amount agreed under a one time settlement.

The bank argued that Bandla Ganesh and his family had agreed to withdraw all legal challenges as part of the settlement. However, they later approached the Debt Recovery Tribunal, which ruled in their favour and cancelled the auction.

The High Court found merit in the bank’s arguments and observed that the auctioned property belonged to the guarantors and not to the company undergoing insolvency proceedings. Therefore, the restrictions applicable under insolvency law did not apply.

With this verdict, the High Court has validated the property auction and overturned the earlier relief granted to Bandla Ganesh and his family, bringing the legal battle in the bank’s favour.