Banks issue notices to Nagarjuna's studio to recover loans

Two public sector banks have issued notices to leading Telugu actor Akkineni Nagarjuna's film studio to recover loans amounting to Rs.62 crore. The actor is hopeful of resolving the issue in a few days.

Nagarjuna has denied reports that Andhra Bank and Indian Bank have seized the 7 Acre Studio in Jubilee Hills here.

Sources close to the actor told IANS that the bank authorities have neither seized nor sealed the studio. "All film shootings and other activities are continuing as usual," a source said.

The 7 Acre Studio is an extended facility of Annapurna Studio, founded by Nagarjuna's father and legendary actor Akkineni Nageswara Rao in the 1970s.

Nagarjuna, who is the managing director of Annapurna Studio, and other officials were negotiating with the banks and were hopeful of an amicable settlement within a week.

Akkineni family reportedly owes Rs.32.3 crore to Andhra Bank and Rs.29.7 crore to Indian Bank. The banks asked the family to clear the dues, failing which they will seize the studio.

The actor in 2012 had announced Rs.100 crore investment in new facilities including state-of-the art climate-controlled movie production studios.

The family had raised Rs.70 crore as loans from a consortium of banks and invested about Rs.25 crore of their own funds.