Home CRIME Odisha court allows CBI to take Deccan Chronicle vice chairman on two-day...

Odisha court allows CBI to take Deccan Chronicle vice chairman on two-day remand

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Reported by Santosh Jagdev
Bhubaneswar, Jun 6:

The special chief judicial magistrate (CJM) court in the Odisha capital today allowed the CBI to take P K Iyer, vice-chairman of Deccan Chronicle (DC) group, who was arrested by Commissionerate police from a star hotel in the Odisha capital earlier in the day in connection with a bank loan fraud case, on a two-day transit remand.

Arrested Deccan Chronicle group vice chairman PK Iyer at the Capital Hospital in Bhubaneswar for a medical test before being produced in a local court on Saturday afternoon (OST Photo)
Arrested Deccan Chronicle group vice chairman PK Iyer at the Capital Hospital in Bhubaneswar for a medical test before being produced in a local court on Saturday afternoon
(OST Photo)

Iyer would be produced in the Nampalli court in Hyderabad by the CBI in the next 48 hours, the court said in its order.

A medical test was conducted on him at the Capital hospital here before he was produced in the court this afternoon.

A CBI team from Bengaluru is expected to arrive here this afternoon and take Iyer into custody, Commissionerate police sources said.

Based on an intelligence input, Iyer was arrested by commissionerate police from Hotel Trident in the wee hours today and handed over to the CBI, Bhubaneswar DCP Satyabrata Bhoi said.

“The CBI was in the hunt for Iyer in connection with an alleged loan fraud to the tune of Rs 350 crore”, the DCP said adding that Iyer had been staying in the hotel for the past few ekks on a fake identity.

“The accused had availed multiple short-term corporate loans by submitting false financial statements in 2009-2011,” he added.

Sources in the Ccommissionerate 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.