Chairman and Managing Director (CMD) of Canara Bank R. K. Dubey, on Friday, said a forensic audit had revealed several irregularities in the balance sheet of Deccan Chronicle Holdings Pvt. Ltd. (DCHL).
The bank has loaned about Rs. 360 crore to the company, and had sought a forensic audit of the company’s financials. Cases have been filed with the Central Bureau of Investigation (CBI), and several Courts have been moved in the past few months after he became CMD. The bank has also moved the Debt Recovery Tribunal to recover the money.
“We are hopeful of good recovery,” he said.
On his first visit here as CMD, Mr. Dubey shared details of the bank’s exposure to DCHL and the findings of the forensic audit report. “The forensic audit has revealed that the balance sheet was not exact and that there are issues in the balance sheet itself. It could throw limited light only, and for a more detailed investigation, the agencies need more information,” he said, adding that wrong registration certificates were filed by the company.
“Whatever I have said now, I have testified to Government earlier,” he stated, while responding to questions on the issue.
He refuted media reports suggesting that a consortium led by Canara Bank had lent a total of about Rs. 4,000 crore to DCHL.
“I have gone on record saying that neither is there a consortium nor is it led by Canara Bank. We have lent about Rs. 360 crore, and you can ask other banks about their exposure.”
On Wednesday, Kotak Mahindra Bank took possession of the premises of a DCHL printing press at Kondapur near here.