Odisha police arrested P.K. Iyer, vice-chairman of Deccan Chronicle (DC) group, from a city-based hotel in connection with multi-hundred crore bank loan scam in Bhubaneswar on Saturday morning.
Mr. Iyer, who was wanted by CBI in the loan scam, had been staying in a city-based star hotel on a fake identity for past few months. Soon after his arrest, Commissionerate police handed over his custody to CBI. Acting on a tip off, the city police entered the five-star hotel in the wee-hours of Saturday and apprehended him.
“The Deccan Chronicle vice-president was on the run. Specific input about his hide out in the hotel was forwarded to us. Subsequently, a team went into the hotel early in the morning and arrested him (sic),” said Satyabrata Bhoi, Deputy Commissioner of Police.
Mr. Bhoi said a case was registered in Hyderabad in bank loan fraud case and a non-bailable warrant was also issued for him.
Earlier, Deccan Chronicle Holdings chairman T. Venkattram Reddy and managing director T. Vinayak Ravi Reddy were >arrested in bank loan fraud case, but they were subsequently granted bail in by a lower court in Hyderabad.
According to CBI sources, Mr. Iyer had a role in submitting false financial statements in 2009-11 for availing corporate loans.
He was taken to Capital Hospital here for medical check-up and would be produced before Chief Judicial Magistrate court of CBI late on Saturday. A CBI team from Bengaluru was said to have left for Bhubaneswar for interrogation of Mr. Iyer.
N. Rahul from Hyderabad adds
P.K.Iyer is the third accused in the case against Deccan Chronicle Holdings Limited for defaulting loan repayment to Canara Bank. He is Director (Finance) and vice-chairman. The chairman and managing director T. Venkatram Reddy and Vinayak Ravi Reddy respectively have already been arrested and released on bail. Mr. Iyer was evading arrest all these days. He will be produced in a magistrate court at Nampally which is trying the accused.