Two sons of Telangana minister Jupally Krishna Rao have defaulted on a loan of over Rs 86 crore they took from State Bank of India(SBI). Now, the bank is struggling to recover the amount. Though SBI’s stressed assets management branch conducted an e-auction for mortgaged properties in March this year, the bank could get bids for only about Rs 2.2 crore and failed to realise even the loan amount.

According to officials, Jupally Arun and Varun, two sons of the minister, floated a company Shaili Paradigm Infratech Pvt Ltd, along with a third partner Kiran Reddy Vasireddy. Arun was founder and managing director of the firm that acted as a service provider for irrigation projects and water & road projects in Telangana. Pledging their property as collateral security, the two sons borrowed over Rs 60 crore from SBI in 2013. Pledged properties included a four acre land in Kismatpur, five land parcels of three acres in Gagan Pahad in Rajendranagar and three flats in Royal Pavilion apartment complex in Ameerpet. Along with interest and other expenses, the loan amount in December 2017 touched Rs 86 crore.