Realtor who leased riverfront bungalow to Chandrababu Naidu denies bankruptcy reports

Lingamaneni, in a press release on Monday evening, denied the reports that LEPL Projects Limited had become bankrupt due to heavy losses and was not in a position to repay the loans to its creditors.

Prominent realtor Ramesh Lingamaneni, who had leased out his Krishna riverfront bungalow to Telugu Desam Party (TDP) president N Chandrababu Naidu, has denied reports that he had gone bankrupt and filed an insolvency petition before the National Company Law Tribunal on behalf of his company Lingamaneni Estates Projects Private Limited (LEPL).

Realtor Ramesh Lingamaneni has denied reports that he filed an insolvency petition before the National Company Law Tribunal on behalf of his company Lingamaneni Estates Projects Private Limited. (HT FILE Photo)

Lingamaneni, in a press release on Monday evening, denied the reports that LEPL Projects Limited had become bankrupt due to heavy losses and was not in a position to repay the loans to its creditors. “The LEPL is a very reputed and solvent company in Andhra Pradesh with strong fundamentals and there was no issue of non-payment to creditors. “There is absolutely no cause or reason to think that LEPL is bankrupt or insolvent,’’ he said.

Reacting to reports that appeared in media, Lingamaneni said the issue was pertaining to Air Costa Airlines, a group company of LEPL. He said it had nothing to do with any companies and businesses of LEPL group. “Indisputably, neither LEPL nor had I filed any insolvency petition in any court in India,’’ read the press release.

Lingamaneni said during the course of its business operations, LEPL Projects Limited-Air Costa entered into a commercial contract with a Germany-based company for repairs, maintenance and overhaul services in 2014.

Subsequently, a commercial dispute arose between LEPL Projects Ltd-Air Costa and the German firm and the latter filed a petition before the NCLT, Amaravati Bench.

“On November 14, 2019, the petition was admitted by the NCLT and directed the interim resolution professional for commencement of corporate insolvency resolution process of LEPL immediately,” Lingamaneni said, adding that his company had appealed against the order in an appropriate judicial forum.