Odisha Sun Times Bureau
Bhubaneswar, June 7:
A team of Bengaluru CBI bank fraud cell led by SP Surya Thankappan, took PK Iyer, vice-chairman of Deccan Chronicle (DC) Group on transit remand after arriving in the Odisha capital this morning.
Iyer was arrested by Commissionerate police from a star hotel in the city on Saturday in connection with a bank loan fraud case .
Later in the day the special chief judicial magistrate (CJM) court had allowed the investigating team to take Iyer on a two-day transit remand.
Additional SP of the bank security fraud cell Biswajit Das had arrived here on Saturday evening to take Iyer on remand. Iyer will be first taken to Hyderabad and after being produced before the Metropolitan Court there will be taken to Bengaluru. After Iyer is taken to Bengaluru, the investigation into the loan fraud by the company will be intensified, said sources in the investigation team.
A medical test was conducted on Iyer at the Capital hospital here before he was produced in the court yesterday afternoon.
Based on an intelligence input, Iyer was arrested by Commissionerate Police from Hotel Trident in the wee hours on Saturday and was handed over to the CBI according to Bhubaneswar DCP Satyabrata Bhoi.
“The CBI was in the hunt for Iyer in connection with an alleged loan fraud to the tune of Rs 350 crore”, the DCP had said adding that Iyer had been staying in the hotel for the past few weeks on a fake identity.
“The accused had availed multiple short-term corporate loans by submitting false financial statements in 2009-2011,” he had added.
Sources in the Commissionerate Police said Iyer was living in Room No 220 of Trident Hotel here under the assumed name of Chitra Athwani since May 17. He had stayed incognito in Kolkata and Port Blair before coming to Bhubaneswar, the sources said.
CBI sources said a fraud case was registered against him by the Bangalore CBI earlier. Iyer has an arrest warrant against him.
Earlier this month, Iyer’s boss and the chairman, Tikkavarapu Venkattram Reddy, was arrested by the CBI, in Hyderabad, along with his brother and managing director, T Vinayak Ravi Reddy, on charges of defrauding Canara Bank and causing it losses of over Rs 350 crore, according to the FIR, filed by the investigating agency.
The case related to the alleged fraud of Rs 357 crore suffered by Canara Bank was registered under Sections 120-B r/w 420, 468 and 471 of the Indian Penal Code.
The CBI had filed a criminal case against the three key promoters of the Deccan Chronicle Holdings Limited (DCHL) – T Venkatram Reddy (chairman), T Vinayak Ravi Reddy (managing director) and PK Iyer (vice-chairman) – for allegedly defrauding Canara Bank.
Sources in the CBI had earlier alleged that the agency has found evidence that the DC promoters had “deliberately hatched a conspiracy to cheat and cause a loss to a tune of Rs 1,230 crore to the Canara Bank over a period of four years, from 2008 to 2012”.
“It is alleged that the company had submitted false and fabricated balance sheets concealing its actual borrowings from Canara Bank’s corporate lending branch, Secunderabad, and other banks and had also alienated the security hypothecated/mortgaged to Canara Bank. The total loss allegedly caused to Canara Bank is to the extent of Rs 357.77 crore (approx) as on 08.09.2012,” an earlier CBI release from Delhi had said.
“In furtherance of the conspiracy, the accused had availed Open Cash Credit limit with periodical enhancements and multiple Short Term Corporate loans aggregating Rs 1,230 crore (approximately) 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 said.