Canara Bank to approach courts for recovery of Rs 350 cr in Deccan Chronicle Holdings dues case

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SummaryCanara Bank mandated to conduct a forensic audit of the books of Deccan Chronicle Holdings.

Canara Bank, mandated to conduct a forensic audit of the books of Deccan Chronicle Holdings (DCHL), is hopeful of recovering its dues of Rs 350 crore.

Canara Bank will approach the judiciary for attachment or sale of properties of DCHL towards initiating the recovery process.

“The loan is partially secured because there are securities that have multiple charges to various institutions. Hence, there is a fraud committed by them on the banks. Since we cannot identify a particular security for attachment, it is for the courts to take a call on these securities,” said RK Dubey, CMD, Canara Bank.

“However, we are going strongly on Deccan Chronicle promoters. We have filed civil and criminal cases. We have made enough provisions for this account and are hopeful of recovering the dues,” Dubey added. Recently, Andhra Bank had also taken possession of two properties of Deccan Chronicle Holdings Ltd worth over R160 crore. Besides, the Andhra Pradesh High Court allowed Kotak Mahindra Bank to sell the printing press premises of DCHL in case the company failed to repay a loan of about R100 crore.

Canara Bank had appointed audit firm Deloitte to undertake a forensic audit on DCHL in September last year. Dubey had earlier said that about 40-50% of the loan was secured by current assets and receivables.

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