Cash laundering case: ED attaches property of Deccan Chronicle, its ex-promoters price Rs 122.15 cr

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Chinese betting racket busted, ED freezes bank accounts with Rs 47 crore


Written by Deeptiman Tiwary
| New Delhi |

Up to date: October 16, 2020 10:17:10 pm


Chinese betting racket busted, ED freezes bank accounts with Rs 47 croreChinese betting racket busted, ED freezes bank accounts with Rs 47 croreThe Enforcement Directorate (ED)

The Enforcement Directorate (ED) has provisionally connected immovable property price Rs 122.15 crore belonging to Deccan Chronicle Holdings Ltd (DCHL) and its former promoters in reference to a cash laundering case. The case, the place DCHL’s former promoters T Venkatram Reddy and T Vinayakravi Reddy are accused, is related to an alleged financial institution mortgage fraud of Rs 8,180 crore dedicated by the group.

Based on ED, the connected property embody 14 properties situated in New Delhi, Hyderabad, Gurgaon, Chennai, Bangalore and many others. The ED stated not one of the property are coated beneath the Nationwide Firm Regulation Tribunal (NCLT) course of.

That is the second attachment on this case, with the entire attachments now touching Rs 264.56 crore.

Investigations beneath PMLA have been initiated by ED towards DCHL and its administration within the 12 months 2015, based mostly on six FIRs and corresponding chargesheets filed by the Central Bureau of Investigation (CBI).

Based on ED, its probe revealed that the three promoters of DCHL – P Okay Iyer, T Venkatram Reddy and T Vinayakravi Reddy – manipulated the stability sheets of the corporate inflating the profits-advertisement income and grossly under- said the monetary liabilities of the corporate to color a rosy image for years to cheat banks.

“Steadiness Sheets of the corporate have been fudged and loans taken from one Financial institution have been hidden from different monetary establishments. Through the years, M/s DCHL availed credit score services to the tune of greater than Rs 15,000 crore. Cash path investigation revealed that a lot of the loans have been cyclically rotated into group firms and have been diverted to pay again older loans. Loans taken for working capital necessities and for enterprise wants of M/s DCHL have been diverted to extravagant initiatives and the diverted funds …have been in the end proven as losses,” ED stated in an announcement.

ED has alleged {that a} vital a part of the mortgage was diverted into subsidiaries which didn’t do any official enterprise. They have been additionally diverted into the proprietary issues of Reddys with none correct accounting.

“Additionally it is revealed that the accused promoters obtained hefty kickbacks from the funding made by M/s DCHL into M/s Odyssey at extremely inflated values. The promoters ran the general public listed firm M/s DCHL like their proprietary fiefdom throwing all norms of company governance to wind. There have been many suspicious donations to numerous Trusts,” the ED assertion stated.

The investigations additionally revealed that regardless of the initiation of the CIRP course of, Reddys and their shut members of the family proceed “to yield oblique management over the print media and are working in senior capacities drawing massive month-to-month salaries.”

The investigation company claimed to have seized high-end autos which have been registered within the identify of DCHL from their possession. “The promoters have been additionally discovered to be re-purchasing the mortgaged property at discounted charges by means of personal treaties through the use of hid proceeds of crime by means of entrance firm. The online quantity of loss brought on to the banks/NBFCs/ Monetary Establishments is estimated at Rs 8180 Crore together with the unpaid principal mortgage quantity of roughly of Rs 3000 crore,” the ED assertion stated.

DCHL is at present beneath the CIRP course of wherein a decision plan for under Rs 400 crore has been authorized by the NCLT.

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