Punjab National Bank has sued Kothapalli Geetha, Member of Parliament from Araku Valley, Andhra Pradesh, and her husband and Managing Director of Visweswara Infrastructure PRK Rao, for not paying dues worth ₹81.21 crore.
Rao had taken a term loan of ₹25 crore from PNB’s Large Corporate Branch, Banjara Hills, Hyderabad, on December 30, 2008 which became a non-performing asset on December 31, 2009. After a cheque for ₹25 crore given by Rao bounced, the bank filed a criminal case against him and Geetha, a director of the company and the guarantor. Geetha was elected to Parliament on a YSR Congress Party ticket. Subsequently, a special judicial magistrate court found Rao guilty and he was asked to pay ₹25.25 crore to the bank. He was also sentenced to two years simple imprisonment. The court, however, acquitted Geetha.
“We filed an appeal before VIII Additional Metropolitan Sessions Judge and obtained a personal notice to be served to her by the bank which will be served now,” PNB said in a release issued here.
Arrest warrantAn arrest warrant has also been issued, directing the Commissioner of Police Visakhapatnam to produce Rao before the court. A case has also been registered with the Central Bureau of Investigation for the security fraud in the loan account. “The present dues of the company to the bank as on November 30, 2016 is about ₹81.21 crore,’’ PNB said.