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Journalism of Courage
The Central Bureau of Investigation (CBI) has registered a case against the chairman,vice-chairman,managing director and the auditors of Hyderabad-based Deccan Chronicle Holdings Limited (DCHL).
The agency has accused the chairman T Venkatram Reddy and the others of cheating Canara Bank by submitting fabricated financial statements,concealing liabilities and borrowings from other banks and financial institutions.
The FIR says that the accused had availed Open Cash Credit limit with periodical enhancements and multiple Short-Term Corporate loans aggregating Rs 1,230 crore from Canara Bank,thereby availing excessive bank finance without adequate drawing power by allegedly submitting false and fabricated financial statements and by suppressing the borrowings taken from other banks.
The Secunderabad branch of Canara Bank had recently filed a complaint against DCHL when it failed to repay a portion of the Rs 1,230 crore loan. The bank,in its complaint with the CBIs Bengaluru office,had stated that it suffered a loss of Rs 357.77 crore till september 2012 due to DCHLs misadventures.
It is also alleged that the accused utilised the short-term corporate loans for purposes other than for which it were sanctioned by fraudulently diverting the proceeds of various credit facilities.
The agency also conducted searches at the office premises of private firm at Hyderabad and the residential premises of the accused.
