Legal action against Deccan Chronicle action after audit
Lenders to Deccan Chronicle Holdings Limited (DCHL) would take a joint decision once the report of the forensic audit of the Hyderabad-based company is submitted and "we may take legal action" (thereafter), a senior Canara Bank official said today.
"Probably we may initiate...we may take legal action", Canara Bank's Executive Director A K Gupta told reporters when asked about the course of action once the audit report is out.
"Probably this month it (report on the forensic audit of Deccan Chronicle Holdings by Deloitte will be ready) must come, let's see", he said.
Canara Bank would be in touch with other lenders and take a joint decision on what needs to be done "in this case". "A joint decision will be taken".
Canara Bank has an exposure of Rs 330 crore to DCHL, he said. In the second quarter, the bank has made a provision of Rs 225 crore following the "slipplage" on this account, Gupta added.
According to reports, the total exposure of the lenders to the company is about Rs 5000 crore.
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