Canara Bank filed a petition before National Company Law Tribunal (NCLT), Hyderabad, urging it to declare M/s Transstroy (India) Ltd as bankrupt and initiate corporate insolvency process against the construction company.
Transstroy defaulted several 100s of Crores to various banks. It has become defaulter to 725 Crore to Canara Bank alone. This announcement came as a huge shock to the Central Government as Transstroy is the main contractor currently entrusted with the task of constructing Andhra Pradesh’s prestigious Polavaram irrigation project.
The ramifications are going to be severe as the state government has urged to cancel the tender and go for a new contractor but the central government retained the contractor since bringing in the new contractor will have financial implications.
AP Government’s Stand got vindicated with this move of Canara Bank and this comes as an embarrassment to the Center. There are rumours that TDP MP Rayapati Samba Siva Rao who owns Transstroy influenced the Delhi to retain the contract with his contacts in Delhi.
