CBI files case against DCHL, chairman T Venkattram Reddy in Rs 30.54 crore fraud, says report
The Central Bureau of Investigation (CBI) on Friday filed a case against Deccan Chronicle Holdings Ltd (DCHL), its chairman T Venkattram Reddy in a Rs 30.54 crore fraud case, news agency ANI reported. The CBI has also made some officials of CARE Rating Agency and United India Insurance Company as accused in the case.
In July last year, the National Company Law Tribunal (NCLT) in Hyderabad had appointed an insolvency resolution professional (IRP) while hearing a plea filed by the Canara Bank which claims DCHL owes it more than Rs 723 crore. At that time the NCLT had also put a moratorium on liquidation of the company.
CORRECTION: CBI files a case against Deccan Chronicle Holdings Ltd, its chairman T Venkattram Reddy, CARE Rating Agency and officials of United India Insurance Company Ltd for a fraud worth Rs 30.54 crore.
— ANI (@ANI) March 23, 2018
In February 2015, the CBI had arrested T Venkatram Reddy, the chairman of the Hyderabad-based English daily Deccan Chronicle in connection with alleged default of Rs 357 crore loan from Canara Bank. Back then CBI sources had said the arrest was in connection with a case registered by it against the company Deccan Chronicle Holdings Limited in July 2013 on the basis of a complaint from Canara Bank, Bangalore, according to PTI.
In 2013, the agency had registered a case of alleged cheating and criminal conspiracy against Venkatram Reddy. The Bank had refused to restructure the loan taken by the company that had remained unpaid. In 2015, Reddy was taken into custody by a CBI team from Bangalore after a brief questioning, PTI had quoted sources as saying.
Back then, vice-chairman and managing director of the company T Vinayak Ravi Reddy was also arrested, the news agency had quoted CBI sources as saying. The Deccan Chronicle has a loan of more than Rs 4,000 crore to be paid back to a group of banks.
In February 2018, The Times of India reported the interim insolvency resolution professional (IRP), KK Rao, invited Expression of Interest (EoI) from prospective investors/consortium of investors to submit their resolution plans before 15 February, 2018.