AndhraNews.net
Home » Features » Companies » Deccan Chronicle Holdings Limited

Deccan Chronicle Holdings Limited


Deccan Chronicle Holdings Limited (DCHL) runs the Indian English-language daily newspaper Deccan Chronicle. The newspaper has a total readership of over 10.88 lakhs.

The Deccan Chronicle Holdings Limited started its operations in Andhra Pradesh as a partnership in 1938. T Chandrashekar Reddy took over the operations in 1976 and subsequently handed over the operations to his two songs T Venkattram Reddy and T Vinayak Ravi Reddy.

Financial Troubles

Financial Services firm KARVY filed a complaint against DCHL alleging them of financial fraud. Deccan Chargers promoters T Venkat Rami Reddy, T Vinayak Reddy and PK Ayyar were named in the complaint.

Subsequently several other companies to whom DCHL owned have urged the court to wind the company and settle their debts.

ICICI Bank

ICICI Bank has filed two petitions in the Debt Recovery Tribunal, Hyderabad seeking the recovery of Rs. 511 crore loaned to DCHL.

Jammu and Kashmir Bank

On 29 November 2012, Jammu and Kashmir Bank has approached the Andhra Pradesh High Court to wind up DCHL, liquidate its assets and py its dues to the extent of Rs. 52 crore. The bank has bough a commercial paper (debt instrument) worth Rs. 50 crore whose maturity period was over in June 2012.

Canara Bank

DCHL had availed a loan and credit facilities from the Canara Bank to the tune of Rs 330 crore from August 2006 till March 2012. The credit facility extended to DCHL in 2006 is Rs 20 crore, but it went up significantly from January 2008 onwards.

DCHL has mortgaged its properties like printing machine, shares, land and assets which to Canara Bank.

On 21 December 2012, Canara Bank has approached the Debt Recovery Tribunal (DRT) in Hyderabad for recovery of Rs 347 crore as dues from the company. In its petition, Canara Bank contented that DCHL has fraudulently remortgaged the assets it mortgaged to Canara Bank to other banks. They sought a directive from DRT to restrain DCHL from clearing dues of other lateral lenders before clearing its dues first as they were the first lenders.

Some of the assets that DCHL has mortgaged to Canara Bank as per the petition filed before DRT include:

  • Deccan Chronicle office building, Pitapuram Colony, Visakhapatnam spread over 3249 square yards
  • Building at Narayanapur, Anantapur spread over 2519 square yards
  • Buildings and land in Karimnagar spread over 3600 square yards
  • Land at Guindy industrial estate, Chennai - 43,560 square feet
  • Printing presses of DCHL in Chennai and Andhra Pradesh

GE Capital Services

GE Capital Services has lent Rs 100 crore to DCHL to purchase printing presses under a hire purchase agreement. It is trying to recover the money through a civil court in Ranga Reddy district.

Comment on this story

Share