Among the assets listed is a high-value property in KPHB Phase-6 that houses a branch of Meridian School.

Dues relate to loans from LIC HFL

According to official sources, the outstanding amount pertains to loans availed from LIC Housing Finance Limited.

With repayments reportedly stalled for a prolonged period and no settlement reached despite prior notices, the lender has accelerated recovery by initiating e-auction of attached assets.

KPHB property measuring 3,833.28 sq yards

The property in KPHB Phase-6, Survey No. 1009, measures around 3,833.28 square yards. It currently houses a Meridian School branch.

As per a public notice issued by the Bengaluru branch of LIC Housing Finance, the reserve price for the property has been fixed at ₹65 crore.

Interested bidders can submit e-bid forms until March 23. The e-auction is scheduled for March 24.

The move has drawn attention due to the profile of the borrower and the property's location in a prominent residential and commercial zone of the city.

Business expansion, sector stress cited

Business circles indicated that rapid expansion across multiple sectors within a short period, coupled with inadequate cash flow to service large borrowings, may have contributed to the present situation.

Sources said the family had earlier approached the Supreme Court after receiving recovery notices from the lender. However, failure to regularise repayments led to the initiation of auction proceedings.

Market analysts pointed to fluctuations in the real estate sector and rising interest rates in recent years as additional stress factors affecting leveraged business groups.

Butta Group's diversified footprint

Renuka's family manages the Butta Group, once considered a prominent conglomerate in the erstwhile united Andhra Pradesh.

The group has interests in education through the Meridian Schools chain, automobile dealerships, and hospitality and real estate, including hotels, guest houses and convention centres.

The KPHB property under auction is linked to the group's education vertical, making the development significant.

Political journey

Renuka entered Parliament in 2014 after winning the Kurnool Lok Sabha seat on a YSR Congress Party ticket.

She later extended support to the Telugu Desam Party amid shifting political alignments. Ahead of the 2019 General Elections, she returned to the YSR Congress Party but was denied a party ticket.

After the party formed the government, she was appointed Chairperson of the State Handlooms Corporation during the previous administration.

In recent years, Renuka has maintained a low political profile and did not contest the 2024 elections.