The Enforcement Directorate (ED) has attached movable and immovable assets of Deccan Chronicle Holdings Limited (DCHL), worth R263.10 crore, in an alleged “bank fraud money laundering case”. The assets include land, residential properties, shares, bank balance, foreign currency receivables and luxury cars belonging to Deccan Chronicle Holdings Limited (DCHL). A total loss of R1,161.93 crore was caused to six public sector banks namely Canara Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Corporation Bank and IDBI Bank, ED said.
The case under Prevention of Money Laundering Act, 2002 (PMLA) was initiated following an FIR registered by CBI Bengaluru against DCHL for causing loss of R357.77 crore to Canara Bank, a ED statement said. The CBI also registered five more FIRs in respect of losses caused to five PSU banks and on completion of investigation filed six charge sheets against DCHL. Investigation conducted by the 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 and NBFCs.
“In total, DCHL availed 111 loans amounting to R10,000 crore from 16 different banks during the period from 2004 to 2012. Out of such loans, an amount of R2,800 crore is outstanding to various banks as on September 30,2012, excluding interest. Such loan amounts were used for other than the specified purposes such as investing in 20 group companies/firms, acquiring companies with huge premiums, payments to Airbus towards purchase of cargo aircraft, payments to BCCI for 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/group companies, repayment of earlier loans taken, etc,” the ED said.
The group companies of DCHL, acquired movable and immovable properties with the loan funds received from DCHL, and did not disclose the same in the audited balance sheet of the companies concerned with a view to obscure the identity of such properties, ED stated.