The Enforcement Directorate has provisionally attached assets worth ₹263 crore of the Hyderabad-based Deccan Chronicle Holdings Limited (DCHL), in the form of land, residential properties, shares, bank balance, luxurious cars and foreign currency, in connection with the alleged ₹1,162-crore bank credit fraud case.
The company is alleged to have caused the loss to six public sector banks: Canara Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Corporation Bank and IDBI Bank.
The DCHL had allegedly taken 111 loans amounting to ₹10,000 crore from 16 different banks during 2004-2012 and ₹2,800 crore was outstanding towards various banks as on September 30, 2012, excluding interest.
According to the Directorate, a significant part of the loans was used for purposes other than the specified ones, such as investing in 20 group companies, acquiring companies with huge premiums, payments to Airbus towards purchase of cargo aircraft, payments to the Board of Control for Cricket in India for the Indian Premier League franchisee of “Deccan Chargers”, payments towards dividends declared by DCHL, buy-back of shares, issue of bonus shares, purchase of luxurious cars in the name of associates or group companies and repayment of earlier loan dues.
