Debt-ridden Deccan Chronicle goes to BIFR

 F E :Friday, September 20, 2013

SUMMARYDeccan Chronicle Holdings (DCHL) has approached the Board for Industrial and Financial Reconstruction (BIFR) seeking a bailout under the Sick Industrial Companies (Special Provisions) Act of 1985, reports

 Deccan Chronicle Holdings (DCHL) has approached

the Board for Industrial and Financial Reconstruction (BIFR) seeking a bailout under the Sick Industrial

Companies (Special Provisions) Act of 1985, reports fe Bureau in Hyderabad. The company on Wednesday informed the Bombay Stock Exchange that the board of BIFR had registered its reference under Section 15(1) of the Act. The company is facing a Central Bureau of Investigation probe into alleged financial irregularities by its management.

The company informed the BSE: “The Board for Industrial and Financial Reconstruction (BIFR) has registered our reference under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act 1985 as Case No.66/2013 vide their letter No. 3(D-1/BC/2013) dated September 17, 2013.’’

A three-member team from the ministry of corporate affairs (MCA), is also closely monitoring the current crisis in the company and also the alleged violations of company laws by the DCHL management. The team was directed to inspect all records pertaining to DCHL. The Central Bureau of Investigation (CBI) has also booked a case of fraud against the management. The Debt Recovery Tribunal (DRT) had recently stayed the auction of trademarks and titles of Deccan Chronicle, Financial Chronicle, Asian Age and Andhra Bhoomi dailies, belonging to DCHL. fe Bureau in Hyderabad