It is further asserted that the 8threspondent promoted M/s Bhuvaneswari Carbides and Chemicals Pvt. Ltd and M/s Bhuvaneswari Carbides and Alloys Pvt. Ltd and both these entities have borrowed heavily from various banks and financial institutions which remain unpaid and that M/s Bhuvaneswari Carbides secured a loan of Rs.40 Lakhs from the Andhra Pradesh State Financial Corporation, a Corporation owned by the State Government and the loan was secured by mortgaging Ac.5.00 of land at Renigunta and that the loan was required to be repaid in eight years but however, the same was not repaid and in the year 2001 when the 8threspondent was functioning as the Chief Minister of the State, for most inexplicable reasons, the Andhra Pradesh State Financial Corporation has entered into a one time settlement with M/s Bhuvaneswari Carbides Pvt. Ltd by agreeing to receive a paltry sum of Rs.11 Lakhs and settle the entire loan account notwithstanding the loan transaction was secured by mortgage of Ac.5.00 of land at Renigunta which could be worth atleast of Rs.10 Crores at that point of time.
The inaction of the Andhra Pradesh State Financial Corporation for not taking any action for recovery of the loan amount and then quietly entering into a one time settlement is proof positive of abuse of power by 8th respondent. It is further pointed out that on 04.04.1998, Dr. Reddy’s Laboratories, a giant pharmaceutical company based in Andhra Pradesh was granted sales tax deferment of Rs.25 Crores for a period of 14 years by the State Government when the 8th respondent was its Chief Minister. More
