The Delhi High Court has ordered the promoters of Deccan Chronicle Holdings (DCHL) to make a security deposit of R50 crore in favour of Religare Finvest (RFL) to settle financial dispute with the lender.
Delhi High Court-appointed arbitrator VK Gupta has asked DCHL to furnish security in the form of tangible assets or bank guarantee within the next four weeks of the order (by April 15), which will remain in the joint custody of RFL and DCHL in a locker in a nationalised bank. Recently, the Bombay High Court had also ordered DCHL to deposit R101 crore worth of security in favour of Tata Capital.
RFL had sanctioned a loan of R220 crore to DCHL in 2012, for which equity was pledged by promoters as part of security. However, the share price of DCHL saw a sharp fall in July 2012. RFL then asked DCHL to deposit another R40 crore worth of additional security. The borrowers defaulted on this obligation to RFL and the matter reached the court, where DCHL promoters agreed for the matter to be settled through arbitration.
Meanwhile, Andhra Pradesh High Court has dismissed DCHL plea for a stay on all the cases filed by various banks and financial institutions.