CBI files charge sheet against Deccan Chronicle Holdings Chairman, others in bank fraud case

Newsroom24x7 Desk

cbiThe Central Bureau of Investigation has filed a charge sheet in the Court of additional chief metropolitan magistrate (ACMM) in Hyderabad against media baron and Chairman of Deccan Chronicle Holdings (DCHL) T. Venkatram Reddy, the vice chairman and certain other employees of this company and two other persons of another Hyderabad based company for criminal conspiracy and for allegedly cheating the prime Corporate Branch of Canara bank in Secunderabad of an amount of approximately Rs.357.77 crore.

Based on the complaint filed by Canara Bank, the CBI had registered a case on on July 6, 2013 against the accused persons. It was alleged that the accused persons had conspired among themselves to cheat Canara Bank of an amount of approximately Rs.357.77 crores and for this purpose, the said firm allegedly used Open Cash Credit limits (OCC) that were later enhanced along with Multiple Short Term Corporate Loans (STCLs), by submitting fabricated financial statements, and by suppressing information regarding the loans taken from other banks. It was also alleged that the repayments were not made within the due period, leading to total outstanding liability of over Rs.357.77 crore.

The chairman of Deccan Chronicle and The Asian Age group of publications, was arrested along with his brother the vice chairman and MD of DCHL T. Vinayak Reddy on February 14 this year after interrogation by the CBI in this case. Both of them were granted bail on April 15.

The arrest was made in a casual manner, ignoring a Supreme Court judgement on the matter. There was neither any notice, or any warrant. The arrests were made on a case lodged in 2013 by Canara Bank for alleged default of loan. DCHL intends to fight out the illegal arrest of its company directors in the courts. The company’s heads have always cooperated with the investigation and have been available to the investigating agencies. No incriminating evidence suggesting fraud has been brought against them. – DCHL, following the arrest of company Chairman and Vice chairman

Meanwhile, CBI has said in a statement that the findings that form the basis of the charge-sheet are based on the investigation done by CBI and evidence collected by it. Under the Indian Law, the accused are presumed to be innocent till their guilt is finally established after a fair trial.