CBI raid at Deccan Chronicle for alleged financial irregularities

The Central Bureau of Investigation (CBI), on Monday, carried out searches at Deccan Chronicle offices in Hyderabad in connection with a complaint filed by Canara Bank for alleged default in loan payments.

The CBI officials said Canara Bank had filed a complaint with the agency against Deccan Chronicle Holdings Ltd., alleging defaults in the repayment of loans to the tune of Rs360-crore.

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Following the complaint, the CBI started its probe against the company, and carried out searches at its office in Hyderabad, the officials said.

According to a CNBC-TV18 report, a team of 24 CBI officers from Bangalore conducted search operations at the official premises of DCHL and also at the residence of managing director Vinayak Ravi Reddy.

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DCHL has over liabilities of Rs 5,000 crore borrowed from different banks and financial institutions.

Several winding up petitions have been filed against DCHL in different courts including the Andhra Pradesh High Court.

The finance ministry had ordered a forensic audit which was conducted by Canara Bank. However, neither the audit or the search operations were able to bring key details to light.

Canara Bank chairman and managing director Rajeev Kishore Dubey has in the past confirmed that the forensic audit had revealed irregularities following which the bank which has an exposure of around Rs 360 crore to DCHL, had approached the CBI.

With inputs from PTI