Hyderabad: High Court of Hyderabad dismissed the petition filed by Lanco Infra Tech Ltd. which had requested the court to issue stay order on the notices issued by IDBI and Power Finance Corporation of India for seizing its assets for non-payment of loans.
High Court allowed Power Finance Corporation and IDBI to continue its process. Lanco Infra Tech Ltd. had borrowed Rs. 88 crore from IDBI against bank guarantee. In the same manner, it also borrowed Rs. 2000 crore from Power Finance Corporation. Since Lanco Infra Tech Ltd. failed to repay the debts, notices were issued to auction its assets.
Justice Ramalingeshwara Rao dismissed the petition of Lanco Infra Tech Ltd. and allowed the Power Finance Corporation and IDBI to continue the process of auction.