CBI seeks 14-day custody of Deccan Chronicle promoters; hearing posted to Feb 19

The hearing on a petition seeking a 14-day police custody of the promoters of Deccan Chronicle Holdings Limited (DCHL), filed by the Central Bureau of Investigation (CBI) officials on Monday, has been posted to February 19 by a local CBI court.

The company chairman, T Venkattram Reddy, and managing director T Vinayaka Ravi Reddy were arrested on Saturday by a team of CBI officials from Bengaluru in connection with an alleged loan fraud case filed in July 2013.  

Bengaluru-headquartered Canara Bank had lodged a complaint with the CBI against the company promoters two years ago, after the company defaulted on a loan amounting to over Rs 350 crore.

The company, which runs Deccan Chronicle English daily among other publications, said the arrests were made in violation of the Supreme Court orders issued earlier with regard to such actions of the law enforcement agencies.

The court has asked the accused to file a counter after admitting the custody petition of the CBI.  Both the brothers will remain in judicial custody until further orders.