In a crucil development, the National Company Law Tribunal permitted the insolvency proceedings against Lanco Teesta Hydro Power Ltd.
The company belongs to the Vijayawada-based family of former parliamentarian Lagadapati Rajagopal.
It may be recalled that the promoters of the Lanco Teesta Hydro Power Ltd had taken loans to the extent of Rs 313.10 crore from a consortium of banks including the ICICI Bank. However, the company was unable to repay the loan amount to the banks as the firm went into red and the loan was converted into a rouge loan.
After following the procedure, the NCLT has now permitted insolvency proceedings against the company.