CBI registers case against Chronicle

The Central Bureau of Investigation (CBI) has registered a case against the Chairman, Vice-Chairman, and Managing Director of Deccan Chronicle Holdings Limited and its Auditors based on a complaint from Canara Bank in connection with the fraud perpetrated at its Prime Corporate Branch in Secunderabad. The accused have been charged under Sections 120-B r/w 420, 468 and 471 of IPC.

It is alleged in the FIR that during the period 2009-2011, the accused persons hatched a criminal conspiracy to cheat Canara Bank, Secunderabad Branch.

 The accused had availed Open Cash Credit limit with periodical enhancements and multiple short term corporate loans aggregating approximately Rs1,230 crore from Canara Bank, thereby availing excessive bank finance without adequate drawing power by allegedly submitting false and fabricated financial statements and by suppressing the borrowings taken from other banks.

It is also alleged that the accused utilised the Short Term Corporate loans for the purposes other than for which it was sanctioned by fraudulently diverting the proceeds of various credit facilities.

They did not repay the credit limits and also the investments aggregating Rs 20 crore made by the bank in non convertible debentures of the company. It is  alleged that the company had submitted false & fabricated balance sheets concealing its actual borrowings from Canara Bank and other banks.

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