CBI files case against Deccan Chronicle promoters for cheating, fraud

Our Bureau Hyderabad | Updated on July 09, 2013 Published on July 09, 2013


The Central Bureau of Investigation (CBI) has registered a case against the Chairman, Vice Chairman, Managing Director and Auditors of Deccan Chronicle Holdings Limited (DCHL) in connection with cheating, conspiracy and fraud.

The apex investigating agency has booked T. Venkattram Reddy, Chairman of DCHL, T. Vinayak Ravi Reddy (VC) and P. K. Iyer (MD), under sections 120-B read with sections 420, 468 and 471 of Indian Penal Code based on the complaint from Canara Bank in connection with the alleged fraud perpetrated at its corporate office located in Secunderabad.

According to CBI, it is alleged in the First Information Report that during 2009-2011, the accused entered into a criminal conspiracy to cheat Canara Bank, Secunderabad branch.

In furtherance of the conspiracy, the accused had availed open cash credit limit with periodical enhancements and multiple short term corporate loans aggregating to Rs 1,230 crore from Canara Bank.

They availed excessive bank finance without adequate drawing power by allegedly submitting false and fabricated financial statements and by suppressing the borrowings taken from other banks.

It has also alleged that the accused utilised the short-term corporate loans for the purposes other than for which it were sanctioned by fraudulently diverting the proceeds of various credit facilities.

They did not repay the credit limits and also the investments aggregating Rs 20 crore made by the bank in non-convertible debentures of the company.

It is further alleged that the company had submitted false and fabricated balance sheets concealing its actual borrowings from Canara Bank and other banks and had also alienated the security hypothecated/ mortgaged to Canara Bank.

The total loss allegedly caused to Canara Bank is approximately Rs. 357.77 crore as on September 8, 2012.

Searches were conducted at the office premises of private firm at Hyderabad and the residential premises of the accused persons.

The CBI stated that further investigation is continuing.

The publisher of English daily Deccan Chronicle is now faced with several cases and has piled up a debt of over Rs 4,000 crore.

Published on July 09, 2013

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