Attached: Deccan Chronicle Holdings Ltd's bank accounts

M Sagar Kumar, TNN | Aug 7, 2012, 02.28AM IST

HYDERABAD: In a setback for Deccan Chronicle Holdings Ltd (DCHL), the Debts Recovery Tribunal (DRT) in New Delhi has attached five accounts of the company with various banks in Hyderabad and Chennai through two orders issued on August 2 and 3, 2012.

With this, DCHL's accounts with the Hyderabad branches of Punjab National Bank (PNB), HDFC and ICICI as well as the Chennai branch of ICICI Bank have been attached.

The attachment orders were part of DRT's interim orders on a petition filed by Industrial Finance Corporation of India (IFCI) over DCHL's failure to redeem non-convertible debentures worth Rs 25 crore due before the June deadline this year.

During the course of the hearing at the tribunal, DCHL had paid some amount by way of interest on the NCDs to IFCI and for the principal amount of Rs 25 crore it had issued a cheque drawn on ICICI Bank at Chennai that bounced.

In its order, DRT directed that the attachment of accounts to the extent of around Rs 25.17 crore should be kept in interest-bearing 'no lien accounts' for a maximum period of six months and not be distributed without prior permission of the tribunal.

In the interim order, DRT also recorded the apprehensions of the IFCI counsel that DCHL was "transferring their assets one after another" and collection of IFCI's dues would be jeopardized if the bank accounts were not attached at this stage.

The DRT also observed that the "conduct of DCHL was not up to the mark and that they were transferring their shareholdings and encumbering assets in favour of some creditors such as banks and NBFCs.

The IFCI counsel in his plea argued that an urgent interim order was required as DCHL had "already transferred (assets), by way of pledge shareholding of 54% on July 26, 2012 and 14.4% on July 30, 2012". He added that an FIR was lodged by Karvy Stock Broking Ltd against DCHL and its directors for offences under various sections of IPC.

Meanwhile, ICICI Bank, which already has an exposure of Rs 490 crore with DCHL, has moved a fresh application before the DRT seeking protection of the securities mortgaged with the bank by the latter and has sought to be heard in the matter, which has been posted to August 8, 2012.