MS Reddy, independent director of debt-ridden Deccan Chronicle Holdings Limited (DCHL), on Thursday got bail in a cheque-bounce case by furnishing a security bond of Rs. 20 lakh.
Judicial magistrate Ashok Kumar issued the bail order here. Reddy, director and one of the promoters of Deccan Chronicle, was arrested by the UT police and produced before the court on Thursday in the case registered on the complaint of Religare Finvest. On May 18, the court had issued non-bailable warrants against all directors of DCHL.
The warrants are against DCHL chairman T Venkattram Reddy, vice-chairman and managing director T Vinayak Ravi Reddy, vice-chairman and authorised signatory PK Iyer, directors MS Reddy, Karthik Iyer Parasuraman, Pendyal Siddhartha and Venkaparamani Suresh. The next hearing is on July 30.
The warrants were issued after the directors failed to appear before the court on May 18 after the court rejected their petition seeking exemption from personal appearance. The arrest was in compliance with the non-bailable warrants, said Chandigarh Police that sent a five-member team to Hyderabad to deliver the warrants.
Warrants were issued after four cheques issued to Religare Finvest were dishonoured. The complaint suggested that Deccan Chronicle had issued two cheques dated July 1, 2012, and another two dated August 1, 2012, for Rs. 6 crore. A first-information report (FIR) and a criminal case were filed after the cheques bounced.
The economic offences wing of Delhi Police also has registered an FIR against DCHL under Sections 120-B (criminal conspiracy), 420 (cheating), and 406 (criminal breach of trust) of the Indian Penal Code (IPC) based on a complaint that Religare Finvest lodged in May. The financier stated that in June 2012, it had sanctioned a loan against property of Rs. 240 crore to DCHL and disbursed Rs. 100 crore, after which it had discovered that the debt profile submitted by DCHL to secure the loan was false, forged and fabricated.