Bandla Ganesh Property Case: Telangana High Court Upholds Auction of Bandla Ganesh Family Property

Bandla Ganesh Property Case: The Telangana High Court has ruled in favor of Union Bank of India in a long running loan recovery dispute, upholding the auction of a Jubilee Hills property linked to the family of film producer Bandla Ganesh. The judgment overturns an earlier order of the Debt Recovery Tribunal that had cancelled the auction.

A division bench comprising Justice Moushumi Bhattacharya and Justice Gadi Praveen Kumar held that the bank had acted within the provisions of the SARFAESI Act while conducting the auction. The court agreed with the bank’s argument that the disputed property belonged to the personal guarantors and not to the company that had borrowed the loan.

The dispute arose after Sri Parameswara Poultry Farms Private Limited, associated with Bandla Ganesh’s family, defaulted on loans obtained from Union Bank. As part of the recovery process, the bank took possession of the Jubilee Hills property in 2019 and later auctioned it in 2022, receiving Rs 8.51 crore from the sale.

During the proceedings, the family had proposed a one time settlement for the outstanding dues. The bank maintained that the auction amount would be adjusted against the settlement, and according to the records presented before the court, the family had initially agreed to withdraw legal proceedings before later approaching the Debt Recovery Tribunal.

The High Court observed that the tribunal had failed to properly examine the legal provisions and evidence before cancelling the auction. Accepting the bank’s submissions, the bench clarified that the moratorium under insolvency proceedings before the National Company Law Tribunal did not apply because the auctioned asset was the personal property of guarantors rather than an asset owned by the borrowing company.

With this ruling, the High Court has declared the auction legally valid, marking a significant victory for Union Bank in the loan recovery case.