TSRTC Seizes Jeevan Reddy's Mall, Multiplex In Armoor

The Telangana State Road Transport Corporation (TSRTC) management has cancelled the rental agreement with Vishnujit Infra Developers Pvt Ltd, owner of Jeevan Reddy Mall & Multiplex, for non-payment of dues, as per a High Court order.

On Thursday evening, the corporation seized the mall and multiplex building located on RTC land near Armoor bus station in Nizamabad district.

On June 6, 2013, 7,059 square yards of land belonging to the TSRTC was leased out to Vishnujit Infra Developers under Built Operating Transfer (BOT) mode for a period of 33 years. In 2017, former MLA Jeevan Reddy's wife Rajitha Reddy took over Vishnujit Infra Developers. The shopping mall was renamed Jeevan Reddy Mall & Multiplex. And the stalls were leased out to third parties by the company.

The company was not paying its rental dues on time, and by October last year, it owed TSRTC Rs 8.65 crore. After the issuance of notices, the company paid Rs 1.50 crore in October, and Rs 2.40 crore in December, last year. It then approached the High Court challenging the show cause notice of the corporation. After the High Court passed an interim order asking the company to clear its dues to the TSRTC, Rs 2 crore was paid in instalments in January and February of this year.

On March 27, the High Court gave a clear order that all dues in the case should be cleared within a month, making it clear that it was the people's money. The corporation was directed by the HC to take action as per the rules if the dues were not paid. The company did not pay the entire dues even after the one month fixed by the HC. So far, Rs 2.51 crore of rental dues are still pending.

In a statement, the TSRTC said that it had issued more than 20 notices in the last five years to the company to clear its dues. As per the High Court order and the terms of the rental agreement, Vishnujit Infra Developers was finally given a termination order, and the building has been taken over by the TSRTC.

The TSRTC said that it was public organization and would not compromise on the rental dues at all, and that the company was being charged as per the rules.