Deccan Chronicle Holdings (DCHL) has proposed to issue equity shares on a preferential basis. The company is holding a meeting of the board of directors on January 16.
In a notice to the stock exchanges, the company said, “A meeting of the board of directors of the company will be held on January 16 to consider the proposal for issue of equity shares on a preferential basis.’’
Deccan Chronicle Holdings Ltd owes about Rs 4,000 crore to various public sector and private banks and financial institutions. Recently, the BIFR had rejected the DCHL application under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). As per its order, DCHL had approached SICA as an industrial undertaking, each of its units was registered as a newspaper which is outside the purview of the Act. DCHL in support of its claim of being an industrial undertaking has failed to submit a copy of relevant certificate issued by the Secretariat of Industrial Assistance, BIFR, said in its recent order.
The Central Bureau of Investigation (CBI) has already registered a case against DCHL chairman T Venkattram Reddy for criminal conspiracy, cheating and forgery after finding several irregularities in the balance sheet of the company in a forensic audit.