Canara Bank is in pursuit of recovery its Rs 350 crore in dues from Deccan Chronicle Holdings (DCHL), including the possibility of one-time settlement (OTS) with the promoters.
Speaking on the sidelines of the FICCI Finsec 2014, a financial sector conclave organised by FICCI, RK Dubey, Chairman and Managing Director of Canara Bank, said, “We had filed civil and criminal cases against DCHL as they have committed a fraud. The case was referred to CBI which has started the investigation process. Cannot comment on the status now as the investigation is yet to be completed,'' he said.
“The promoters had approached us to restructure the loans through a CDR package as they have become defaulters. We told them it was not possible and asked them to opt for OTS (one time settlement or to Arcil. But selling assets to Arcil will require RBI approval. But we are keeping all options open to recover our dues,'' he said.
“The promoters of DCHL are yet to come back to the bank on these issues. Of the Rs 350 crore loan, part of it is covered, and the rest not covered,” he said.
There are several cases against the DCHL in various locations, including winding up petition and CBI is probing from other angles.
Answering queries, he said, “The loan is partially secured because there are securities that have multiple charges to various institutions. Hence, there is a fraud committed by them on the banks. Since we cannot identify a particular security for attachment, it is for the courts to take a call on these securities,” he said.