LIC Housing Finance to Auction Butta Group Properties Worth Rs.325 Crore Over Loan Default

LIC Housing Finance Limited (LICHFL) has announced a major auction to recover unpaid loans from the Butta Group, a business group headed by former Member of Parliament Butta Renuka and her husband Neelakanta Shiva Butta. According to reports, the couple owes more than ₹340 crore to the state-owned housing finance company.

Biggest Auction by LIC Housing Finance in Recent Times

The auction, which is considered the largest by LIC Housing Finance in recent years, will take place on May 9, 2025. It involves the sale of 15 land parcels and properties located in Khanamet village under Serilingampally mandal, in Rangareddy district of Telangana.

LICHFL has issued an official auction notice for properties listed in Survey Numbers 11/4 and 11/5. These properties are registered under the names of Renuka and Neelakanta.

Loan Taken for Business Ventures, But Repayments Defaulted

The Butta Group had taken loans from LIC Housing Finance under the names of three companies:

• Butta Convention Services Pvt Ltd
• Meridian Edutech Solutions Pvt Ltd
• Butta Infrastructure Pvt Ltd

However, the group reportedly failed to repay the loan for the past five years. Due to continuous non-payment, LIC Housing Finance has now decided to conduct an e-auction to recover the dues.

Earlier Attempt Delayed by Legal Proceedings

LICHFL had tried to auction the same properties once before in April 2024, just before the Andhra Pradesh Assembly and Lok Sabha elections. But that attempt was put on hold due to a case filed in the National Company Law Tribunal (NCLT).

Now, with the legal hurdles cleared, LIC Housing Finance is proceeding with the auction once again. They have set a reserve price of ₹325 crore for the properties. Interested bidders must submit an Earnest Money Deposit (EMD) of ₹32.15 crore, and the bidding must start at 10% above the reserve price.

About the Butta Group and Its Founders

The Butta Group, established in 1985, is involved in various sectors such as education, hospitality, retail, automotive, infrastructure, and healthcare. Neelakanta Shiva Butta serves as the Chairman and Managing Director, while Butta Renuka is one of the directors.

Renuka was elected to the Lok Sabha from Kurnool in 2014 on a YSR Congress Party (YSRCP) ticket. She recently contested in the 2024 elections from the Yemmiganur Assembly seat but did not win.

Speaking to the media, Neelakanta stated that they had asked LIC Housing Finance for two to three years’ time to repay the loan, but the company refused to extend the timeline.