Promoters of DCHL, auditor arrested in bank fraud case

HYDERABAD: The Enforcement Directorate on Tuesday arrested Deccan Chronicle Holdings Limited (DCHL) promoters and ex-directors, T Venkatram Reddy and PK Iyer, and their statutory auditor, Mani Oommen, on money laundering charges in a bank fraud case.
Sources in ED said the three were questioned for the entire day on Tuesday and arrested in the evening for allegedly not cooperating with the investigation. They will be produced before a special Prevention of Money Laundering Act (PMLA) court at Nampally in Hyderabad on Wednesday.
ED sources said the agency could attach only Rs 386 crore worth of properties, while the alleged loan fraud was worth more. The agency took up the case based on six FIRs booked by CBI's bank and securities fraud cell at Bengaluru.
The sources added that the alleged total loan fraud by DCHL and its promoters was pegged at Rs 8,180 crore with interest, while the original defaulted amount was around Rs 1,500 crore. ED had earlier attached the company's properties in New Delhi, Hyderabad, Gurgaon, Chennai, and Bengaluru. Another promoter, T Vinayak Ravi Reddy, didn't attend the ED investigation on Tuesday for personal reasons.