The Enforcement Directorate (ED) has arrested T Venkatram Reddy, the former Chairman of Deccan Chronicle Holdings Limited (DCHL), in connection with a bank loan fraud and money laundering case. Reddy and others are accused of submitting the same titles at different banks to obtain loans, resulting in fraud and money laundering. DCHL and its promoters had defaulted on loans from various banks, amounting to over Rs 8,000 crore. These defaults led to criminal charges against Reddy and the company, filed by financial institutions. This comes after Canara Bank, which had filed a complaint in July 2013 against DCHL for non-repayment of loans, refused to restructure the loan on a plea by DCHL. Canara Bank offered a one-time settlement to the company or face legal action in July 2014.
Reddy has faced multiple charges of fraud and criminal conspiracy and was arrested by CBI in February 2015 in relation to loan fraud. The cash-strapped DCHL had indiscriminately borrowed from several banks, pledging the same titles. Some of the properties have already been attached and shares pledged have been taken away by lenders, including SREI and ICICI Bank.
In October 2020, ED had attached DCHL’s assets worth Rs 122.15 crore. Following this, at least 14 properties of DCHL located in Hyderabad, Bengaluru, and Delhi were attached under the Prevention of Money Laundering Act (PMLA). Reddy also faces numerous civil and criminal cases due to the funds the company raised to meet its investment requirements, including for the Indian Premier League team Deccan Chargers, a retail business run under Odyssey, and an aviation venture.
Reddy’s ostentatious lifestyle, which includes owning a fleet of luxury cars and being a steward at Hyderabad Race Club, has drawn attention. He also sponsors horse racing. The arrest by ED follows an investigation into the money laundering by DCHL, which has resulted in Reddy’s arrest for fraud and money laundering in banking.
