CBI raids on Deccan Chronicle

The company recently admitted having raised Rs 4,000 cr in debt, mostly in the form of short-term borrowing

The Central Bureau of Investigation (CBI) on Monday carried out raids on Hyderabad-based media firm Deccan Chronicle Holdings Ltd, as part of an ongoing investigation into the charges of financial irregularities by the promoters.

The management of Canara Bank had made a complaint in February last year on finding  a host of irregularities in the company balance sheet during a forensic audit commissioned by it. The bank is one of the dozens of lenders which had approached various legal fora after the media firm failed to repay loans. The company recently admitted having raised Rs 4,000 crore in debt, mostly in the form of short-term borrowing; it could not explain where the money had gone.

 According to sources, the CBI action came after the government sent the forensic report to the investigative agency. "The purpose of the forensic audit was to know where the money had gone. But the balance sheet did not reveal the true picture -- there are several issues in the balance sheet itself. They also said that for detailed investigation, more information is required,” Canara Bank chairman R K Dubey told reporters during his first visit to this city after taking charge.

The company’s promoters also face criminal charges of forgery and cheating from city-based Karvy Stock Broking and Chandigarh-based Relegare Finvest.

The Debt Recovery Tribunal here had issued several orders attaching the properties of the company and the promoters. The lenders also accuse the company promoters of mortgaging the same property with multiple lenders, using fake documents.