Guntur MP Galla Jayadev is facing the allegations of conspiring with the Bank Manager to own the rented building for a price much less than the market value. Guntapalli Srinivasa Rao owns a 3-floor building at Brindavan Gardens in Guntur. He took a loan of Rs 2.30 crore from bank on it. He, however, wasn't able to pay the EMIs properly due to financial crisis. In 2014, Mr. Rao rented the building to Galla Jayadev who used it for party activities.
Now, There were allegations against Galla Jayadev that he pressurized Bank Employees to place the building for auction. It is even reported that he conspired with Andhra Bank DGM to make sure the Reserve Price is less than market value. While the plot is worth Rs 7.5 crore, The base price for participating in the auction was fixed as Rs 2.80 crore. Even the supporters of MP seems to be threatening those who wishes to take part in the auction and pressurizing them to withdraw.
Meanwhile, The Owner appealed before Debt Recovery Tribunal and sought some more time to clear the debt. The Tribunal issued orders to the Bank asking it to extend the period if the Owner pays Rs 1 crore by June 24th. Still, Bank Officials decided to go for auction Today itself in spite of the orders of Tribunal. They didn't even bother to make Jaydev vacate the building before going for auction and this comes under violation of rules.