Enforcement Directorate on Tuesday attached assets worth nearly ₹263.10 crore belonging to Deccan Chronicle Holdings Limited, a Hyderabad-based media house owning three English dailies, in connection with a bank fraud case registered two years ago.
These properties attached through a provisional attachment order (no. 03/2017) dated March 28, 2017 are other than those pledged to banks and non-banking financial institutions by DCHL.
The assets include land, residential properties, shares, bank balances foreign currency receivables and luxurious cars and were attached in a case of allegedly causing loss of ₹1,161.93 crore to Canara Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Corporation Bank and Industrial Development Bank of India, all public sector banks.
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ED officials initiated this action under Prevention of Money Laundering Act (PMLA) following an FIR that DCHL had allegedly caused loss of ₹357.77 crore to Canara bank. The case was booked by the Central Bureau of Investigation’s Bank Securities and Fraud Cell two years ago. The case was against DCHL, its management and others. Five more FIRs for allegedly causing loss to five other banks were also issued. Charge-sheet was filed for allegedly causing loss of ₹1,161.93 crore to six public sector banks
In a statement, the ED authorities said that DCHL had availed loans for working capital, purchase of capital goods and short term loans by overstating the receivables, understating huge loan liabilities through fabricated financial statements. According to ED authorities, DCHL had availed 111 loans amounting to ₹10,000 crore from 16 different banks from 2004 to 2012.
Out of these loan amounts, ₹2,800 crore was outstanding to various banks as on September 30, 2012 excluding interest. The group companies acquired movable and immovable properties but the same were not disclosed in the audited balance sheets of companies concerned. This was done apparently to obscure identity of such properties and constituted money laundering, said ED statement.
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To present a rosy picture of the company’s financial position to the investors and banks, DCHL declared dividends, issued bonus shares and bought-back shares by investing ₹230 crore, the ED authorities added.