New Delhi: The Enforcement Directorate has attached the assets of Deccan Chronicle Holdings Limited (DCHL), Hyderabad in a bank loan fraud case, for causing a total loss of Rs.1161.93 Crore to six public sector banks.
Movable and immovable assets in the form of land, residential properties, shares, bank balance, foreign currency receivables and luxurious cars have been attached. The six banks are Canara Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Corporation Bank and IDBI Bank. The case under PMLA was initiated following FIR registered by CBI, BS&FC, Bangalore against DCHL, its management & others for causing wrongful loss of Rs.357.77 Crore to Canara Bank.
CBI also registered five more FIRs in respect of loss caused to five PSU Banks and on completion of investigation filed 6 Charge Sheets against DCHL, its management & others for causing total wrongful loss of Rs.1161.93 Crore to 6 Public Sector Banks.
Investigation conducted by ED revealed that DCHL had availed loans for working capital, purchase of capital goods and short term loans by overstating the receivables, under-stating huge loan liabilities by furnishing fabricated financial statements and not disclosing the loans taken from other banks/NBFCs.
In total, DCHL availed 111 loans amounting to Rs.10,000 Crore from 16 different banks during the period from 2004 to 2012. Out of such loans, an amount of Rs.2800 Crore is outstanding to various banks as on 30.09.2012 excluding interest. Even though the amounts payable were more than Rs.1160 Crores for six public sector banks, DCHL & its management resorted to purchase movable/immovable properties in their group companies and in the name of their family members and not informed to the banks with an intention to obscure such properties.
During the course of investigation, various movable & immovable properties worth Rs.263.10 Crore were identified and the same have been now attached vide Provisional Attachment Order No.03/2017 dated 28.03.2017. The properties attached now by Enforcement Directorate are other than the properties pledged to banks/ NBFCs by DCHL which are under attachment / taken over under SARFAESI Act/ DRT Proceedings.
Further investigation is under progress.