Kolkata-based Srei Infrastructure Finance Ltd has initiated legal proceedings to recover its Rs 220-crore short-term loan from Deccan Chronicle Holdings Ltd (DCHL), the publisher of Deccan Chronicle , The Asian Age , Andhra Bhoomi and Financial Chronicle .
“(Lending to) Deccan Chronicle has been a mistake. We have security of land and all…We have initiated legal action for the liquidation of the securities,” Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure, told Business Line .
According to him, Srei moved the Debt Recovery Tribunal (DRT) during the July-September quarter this fiscal.
“Our legal team is at it, and, we are hopeful of some recovery by the end of March 2014. We are adequately secured, though,” Kanoria said.
According to sources, around five properties of DCHL in Hyderabad and Chennai are mortgaged against the loan.
Apart from Srei, a number of other key lenders have already initiated action against DCHL for the recovery of dues.
DCHL’s application to the Board for Industrial and Financial Reconstruction, as a sick company, has already been rescinded.
While the DCHL stock closed at Rs 3.44, up 3.30 per cent, Srei closed at Rs 23.70, up 2.60 per cent, on the BSE on Tuesday.
UB Group Investment Meanwhile, Srei has no immediate plans to liquidate the 49 lakh shares it holds in United Spirits Ltd, a UB Group company. The shares are held as collateral against the Rs 430-crore loan by Srei AMC (a debt fund) in the now-grounded Kingfisher Airlines (KFA). Srei AMC acquired the loan from ICICI Bank Ltd in June 2012.
“If required we can sell the shares directly in the market,” Kanoria said, adding that the decision to sell will be taken by the fund.
The United Spirits stock closed at Rs 2,607.05, up 2.64 per cent, on the BSE today. KFA closed at Rs 4.267, up 9.77 per cent.