DCHL chairman arrested in bank fraud case

The Central Bureau of Investigation (CBI) Saturday arrested T. Venkattram Reddy, chairman of Deccan Chronicle Holdings Limited (DCHL), in a case of bank loan fraud.

A team of CBI officials questioned Reddy, the owner and publisher of English daily Deccan Chronicle with regard to the loans he had taken from Canara Bank, before taking him in custody, said sources in the investigating agency.

The CBI officials from Banking Security and Fraud Cell, Bangalore, quizzed him on various issues related to the bank loans. He was then taken to government-run Osmania General Hospital for a medical examination.

The DCHL chairman is likely to be produced before a magistrate larer.

Reddy, earlier promoter of Indian Premier League team Deccan Chargers, along with vice chairman and managing director of DCHL, were booked by the CBI for cheating, conspiracy and fraud in 2013, following a complaint by the bank.

The Canara Bank alleged that they availed loans and cash credit aggregating to Rs.A1,230 crore by submitting false and fabricated financial statements and by suppressing the borrowings taken from other banks.

The bank claimed that the total loss caused to it was approximately Rs.357.77 crore.