Lingamaneni Ramesh, the promoter of Lingamaneni Estates Private Limited (The LEPL), that has promoted several real estate projects in and around Amaravati, the existing capital city of Andhra Pradesh, has gone bankrupt.
The LEPL has filed an insolvency petition before the National Company Law Tribunal on November 14, stating that the company had been in huge losses and that it was not in a position to repay the loans to its creditors.
A notification to this effect was released in the media by Insolvency and Bankruptcy Board of India on Monday in the name of Interim Resolution Professional M S Mano Ranjani.
The insolvency resolution would be processed and the exercise would be completed by May 12, 2020.
The notification has called for all the creditors, who had given loans to Lingamaneni Estates, to submit their claims along with proofs on or before November 29.
The Lingamaneni Estates was incorporated in March 1996, with its registered office in Vijayawada and corporate office in Banjara Hills, Hyderabad.
Ramesh had taken up several real estate ventures in coastal districts, particularly near Vijayawada and Amaravati. He also floated an airlines project – Air Coasta, but it did not take off.
He allegedly collected huge money from the customers towards advance payments of the projects. Now, he has to pay back all the money.
Since his projects did not take off and money was locked up, Lingamaneni threw up his hands and filed the insolvency petition, sources said.
Lingameni recently shot into headlines when the YSR Congress government headed by Y S Jagan Mohan Reddy served a demolition notice to his guest house constructed on the banks of Krishna river at Vundavalli unauthorizedly.
The guest house was leased out to Telugu Desam Party president and former chief minister N Chandrababu Naidu, who is still staying in it. The issue is now in the high court.