Following a petition filed by Kotak Mahindra Bank against the management of Deccan Chronicle Holdings (DCHL), the Debt Recovery Tribunal (DRT), Hyderabad, has served a ‘possession notice’ for recovery of dues. The bank had approached DRT for recovery of dues to the tune of R100 crore in September urging the tribunal to restrain the management of DCHL from selling its assets to third parties.
Accordingly, DRT served a notice on Tuesday which is a symbolic attachment of DCHL properties which include the printing press of the company. The amount mentioned in the possession notice was R50.25 crore towards the recovery. Kotak Bank had filed a petition for recovery of its dues through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.
Sources say all the lenders, including IFCI, ICICI, IDFC and others, have been demanding to unlock DCHL brands and selling off their assets before there is a further deterioration in their value, private placement of pledged shares. Recently, DRT had passed an injunction order on DCHL from disposing its assets that are mortgaged to Canara Bank. The tribunal ordered DCHL against alienating, encumbering or “creating third-party interests” over property that includes land and printing presses until further orders.
In its petition, Canara Bank had reportedly claimed assets of DCHL including land at Guindy industrial estate in Chennai and seven printing presses in Chennai and Andhra Pradesh. The tribunal also asked DCHL why the bank’s claim of pledged properties worth R347 crore should not be attached in case DCHL fails to furnish sufficient security.