Media baron Venkattram Reddy arrested on charges of loan fraud
Deccan Chronicle chairperson Venkatram Reddy was arrested in Hyderabad on Saturday evening by the Central Bureau of Investigation on charges of loan fraud.india Updated: Feb 15, 2015 09:07 IST
Deccan Chronicle chairperson T Venkattram Reddy was arrested in Hyderabad on Saturday by the Central Bureau of Investigation (CBI) on the charges of loan fraud.
Sleuths of the banking fraud cell of Bengaluru CBI arrived in the city on Saturday and interrogated Reddy in a case relating to the loans taken from Canara Bank. The CBI later arrested Reddy and his brother and managing director of DCHL, Vinayaka Ravi Reddy. “The case is registered here at the magisterial court and Reddy is produced there. As of now, he would be kept in Hyderabad only,” a senior CBI official of the Hyderabad branch of the probe agency told HT.
The official refused to divulge further on the details as the case is not under their jurisdiction.
But it is understood that the bank had lodged a complaint, after a loan default, in March 2013. Reddy reportedly availed loans aggregating to over Rs 1200 crore from the bank, allegedly producing false asset statements.
Reddy, who runs the Deccan Chronicle group, is under financial stress from some time mainly since his indulgence in the IPL - owning the Hyderabad team Deccan Chargers.
His company Deccan Chronicle Holdings Limited (DCHL) is facing several civil and criminal charges relating to its unsystematic borrowing of funds.