Indian Overseas Bank has initiated steps to possess two properties belonging to the family of Venkattram Reddy, Chairman, Deccan Chronicle Holdings Ltd (DCHL).
The bank has served a repossession notice in connection with a piece of land measuring 3,700 sq. yards (37,000 sq ft) on Sarojini Devi Road in Secunderabad (and buildings on it) and a 5,400 sq ft commercial building in the Sewa Corporate Park at Khasra in Gurgaon.
The two properties were pledged as collateral against a Rs 70-crore loan availed of by DCHL in August 2012.
The Reddy family has 60 days to pay up and prevent the bank from taking possession under the Sarfaesi Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Act, 2002).
A top official of Indian Overseas Bank said that the bank would re-sell the properties, with an estimated market value of Rs 40 crore, through an e-auction if the loan was not repaid within the two-month period.
He added that DCHL has pledged a total collateral of roughly Rs 2,000 crore against its combined loans of approximately Rs 4,000 crore.
The creditors of the company include ICICI Bank Ltd (Rs 490 crore), Canara Bank (Rs 347 crore), Axis Bank (Rs 400 crore), IDBI Bank Ltd (Rs 250 crore) and Andhra Bank (Rs 200 crore), YES Bank Ltd (Rs 194 crore), IDFC Ltd (Rs 100 crore), Corporation Bank (Rs 100 crore), IndusInd Bank Ltd (Rs 100 crore), Kotak Mahindra Bank Ltd (Rs 100 crore) Ratnakar Bank Ltd (Rs 50 crore) and State Bank of Hyderabad (Rs 50 crore).