Loan fraud: Deccan Chronicle Vice Chairman PK Iyer arrested

PK Iyer is accused of involvement in a bank loan fraud case to the tune of Rs 357 crore

Written by Debabrata Mohanty | Bhubaneswar | Published:June 7, 2015 4:48 am

The Odisha police on Saturday arrested PK Iyer, vice-chairman of Deccan Chronicle Holdings Ltd, from a Bhubaneswar hotel over his alleged role in a Canara Bank loan fraud.

Iyer who has been accused by CBI of defrauding Canara Bank to the tune of Rs 357 crore along with Deccan Chronicle Holding group chairman, Tikkavarapu Venkattram Reddy and his brother T Vinayak Ravi Reddy, was nabbed by local police from Trident Hotel in the city around 2.30 am today.

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Bhubaneswar deputy commissioner of police Satyabrata Bhoi said Iyer had been staying in the hotel under the name Chitra Athwani for the last two months and was planning to flee in the next 2-3 days. A CBI team from Bangalore is on its way to Bhubaneshwar to take custody of the vice-chairman.

The DCP said CBI have been looking for Iyer for a long time. Iyer will be produced before CJM court of CBI today after a medical test is conducted on him here at the Capital hospital. A team from Bangalore CBI, where the original FIR was lodged in 2013, is on its way to take Iyer on transit

In February this year, Reddy was arrested by CBI. In July 2013, CBI had registered cheating cases against several top honchos of Deccan Chronicle over taking multiple short-term corporate loans by submitting false financial statements between 2008 and 2012. The company had borrowed the money from Canara Bank’s corporate lending
branch, Secunderabad, and other banks and had also alienated the security hypothecated/mortgaged to Canara Bank. The RBI last year had fined 12 banks including Canara Bank Rs 1.5 crore for not following norms in advancing loans to the DC group.

DCHL publishes the English-language newspapers Deccan Chronicle, Financial Chronicle and the Asian Age and the Telugu daily Andhra Bhoomi.

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