A possession notice has been served by Kotak Mahindra Bank on Deccan Chronicle Holdings Limited (DCHL), publishers of the English daily Deccan Chronicle, for payment of dues.
Served under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and its rules for recovery of Rs. 50.25 crore, the notice called upon DCHL to repay the amount along with interest at contractual rates and other costs and expenses from August 16 last year till payment or realisation within 60 days from the date of receipt. It said the borrower had failed to repay the amount. Hence, notice was given to the borrower, as well as the general public, that Kotak Mahindra Bank had taken symbolic possession of property measuring 9,892 sq.yds at Kondapur where DCHL has a printing press. The bank is said to have extended a loan of Rs. 100 crore and approached the debt recovery tribunal to restrain the management from selling its assets to third parties.
DCHL is facing several petitions from financial institutions for recovery of dues including winding up petitions. GE Capital, to whom the DCHL mortgaged some property and machinery for availing loan of close to Rs. 100 crore, secured a restrain order from the court against the company.
The management of DCHL could not be contacted for comments.
