An audit of the books of Deccan Chronicle Holdings Ltd (DCHL) showed many irregularities, R. K. Dubey, Chairman and Managing Director, Canara Bank, said.
Canara Bank, which had an exposure of Rs 360 crore to DCHL, had conducted ‘scrutiny audit’ of the latter’s books through a global auditing firm.
“The balance-sheet does not reveal exact situation and the company had filed wrong-registration certificates,” he told newspersons here on Friday.
A true financial picture was not revealed and all the loans taken were also not disclosed properly, he added.
“The end-use of the funds has not been established,” the CMD said.
On the recovery of loans, he said he was hopeful of “good” recovery. Of the Rs 360 crore, about 50 per cent was securitised.
“We are doing everything which is possible under the law and also filed a case with the Central Bureau of Investigation,” Dubey said.
Meanwhile, another lender, Kotak Mahindra Bank, had taken possession of DCHL’s printing press at Kondapur here on Wednesday to recover Rs 50-crore dues.
Many other banks, including Andhra Bank, had already identified DCHL properties in Bangalore and Chennai to be sold for recovery of dues.
About six banks which lent over Rs 4,000 crore to DCHL have initiated legal proceeding for recovery.