M. Sukumar Reddy, an independent director of debt-ridden Deccan Chronicle Holdings Limited (DCHL), was arrested on Thursday by a police team from Chandigarh on a complaint by Religare Finvest.
Religare Finvest lent a sum of Rs. 100 crore to DCHL but the latter defaulted in repayment, sources said.
The lender approached police at Chandigarh which arrived in Hyderabad on Wednesday armed with arrest warrants from a local court against DCHL chairman T. Venkatram Reddy, vice-chairman T. Vinayak Ravi Reddy, managing director P.K. Iyer and Mr. Sukumar Reddy who is also a realtor.
However, the Chandigarh Police could not find Mr. Venkatram Reddy, Mr. Ravi Reddy and Mr. Iyer as they were not available in the City. Mr. Venkatram Reddy is said to be on a visit abroad.
Last week, the CBI had searched half-a-dozen locations of DCHL directors and the printing press of Deccan Chronicle daily on a complaint lodged by Canara Bank which also had loan exposure in DCHL. The CBI collected about 25,000 pages of documents in the two day search and seizure operation and secured the permission of court to further investigate into the case.