DCHL promoter arrested by Enforcement Directorate

Prevention of Money Laundering Act

The promoter of Deccan Chronicle Holdings Limited T. Venkatarama Reddy has been taken into custody from his home, in Hyderabad, by the Enforcement Directorate (ED) officials on Wednesday morning (June 14.) They were grilled by the ED officials on June 13. Mr. Reddy and auditor Mani Oommen, who also has been arrested, are accused in a money-laundering case. 

They are expected to be produced before a special Prevention of Money Laundering Act court in Nampally in the afternoon. More details are awaited.

Earlier in 2020, the ED had attached multiple properties of the promoters located in Hyderabad, Delhi, Gurugram, Chennai and Bengaluru.

DCHL had availed loans from several banks including Canara Bank and Union Bank without disclosing its indebtedness. The Union Bank of India declared the account as a non-performing asset on December 31, 2012. Canara Bank filed a case of fraud with the Central Bureau of Investigation against DCHL after a forensic audit of the firm. Later, the Corporate Insolvency Resolution Process (CIRP) was initiated under the Insolvency and Bankruptcy Code (IBC) against DCHL by Canara Bank.