The Hyderabad bench of National Company Law Tribunal (NCLT) on Monday approved the Kolkata-based Srei Multiple Asset Investment Trust's (Vision India Fund) resolution plan for the insolvent Deccan Chronicle Holdings Ltd. The Srei group resolution plan for the company involves around Rs 400 crore.
"Thus, resolution plan dated December 11, 2018 submitted by resolution applicant Srei Multiple Asset Investment Trust (Vision India Fund) which is approved by members of COC having 81.39 per cent voting share stands approved subject to...," said the tribunal in its order.
According to the order, Srei Multiple Asset Investment Trust would have to obtain necessary approvals for the acquisition within a year or any period provided by the law concerned.
"The resolution applicant (Srei) shall obtain necessary approvals required under any law for the time being in force with a period of one year from the date of approval of the resolution plan or within such period as provided in such law," the NCLT order said.
Financial creditors of Deccan Chronicle have an exposure of over Rs 8,000 crore to the media company. Canara Bank, one of the lenders to Deccan Chronicle Holdings, filed for insolvency proceedings against the company and the NCLT admitted the case in July 2017.
The bank loan fraud caused a loss of Rs 1,161.93 crore to six public sector banks -- Canara Bank, Andhra Bank, Indian Overseas Bank, Central Bank of India, Corporation Bank and IDBI Bank. The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are presently investigating the case and have filed FIRs and chargesheets as well.
DCHL had allegedly availed loans by overstating the receivables, under-stating huge loan liabilities by furnishing fabricated financial statements and not disclosing the loans. Investigators earlier said that in all, it availed 111 loans amounting to Rs 10,000 crore from 16 different banks during 2004 to 2012.
These loans were used for other than the specified purposes, investing in 20 group companies and firms, acquiring companies with huge premiums, payments to Airbus towards purchase of cargo aircraft and payments to BCCI for Indian Premier League (IPL) franchisee of Deccan Chargers.
In February 2015, Deccan Chronicle owner T Venkattram Reddy and managing editor T Ravi Vinayak Reddy were arrested and questioned by a team of the CBI from Bengaluru. The group’s vice chairman PK Iyer, as well as the company's auditors CB Mouli & Associates, are the other accused in the case.
IANS inputs