CBI slaps case of cheating, fraud on DCHL mgmt

CNBC-TV18 reports that the CBI has filed a case, related to a Rs 1,230-crore default of loan from Canara Bank, against the chairman, vice-chairman, managing editor and auditors of Deccan Chronicle Holdings Ltd (DCHL) for alleged cheating and fraud.

Also Read: Deccan Default: CBI search fails bring key details to light

Sources also told CNBC-TV18 that the agency booked the case under Sections 120B, 420, 468, 471 of the IPC.

This follows search operations conducted by the CBI at the premises of DCHL and at the residence of the company's managing director Vinayak Ravi Reddy by a team of 24 CBI officers from Bangalore.

DCHL has over liabilities of Rs 5,000 crore in loans from different banks and financial institutions. Several winding up petitions have been filed against DCHL in different courts including the Andhra Pradesh High Court. The finance ministry had ordered a forensic audit which was conducted by Canara Bank. However, neither the audit or the search operations were able to bring key details to light.