C R Sukumar, ET Bureau | 30 Sep, 2014, 08.13PM IST
HYDERABAD: In an embarrassment to the promoters of ailing media house Deccan Chronicle Holdings(DCHL), theDebt Recovery Tribunal (DRT) has decided to auction the eight-seater corporate jet in which the media house owners toured around the world for years.
The move comes months after ICICI Bank, one of the key lenders of the media house, approaching the DRT accusing the DCHL promoters of defaulting on loans of some Rs 500 crore.
The Hawker 400 is a twin-engine jet corporate aircraft, which was imported from the US based Raython Aircraft Company in 2007.
During April last year, ICICI Bankhad moved a local court in Hyderabad against the Deccan Chronicle promoters after a cheque issued for Rs 350 crore by them bounced. ICICI was among dozen odd lenders that dragged the DCHL promoters to various courts involving defaults and cheque bounces.
"DRT has ordered auctioning the corporate jet of Deccan Chronicle on June 2 and we have accordingly sought bids from interested parties through e-auction process," the tribunal appointed advocate commissioner K. Buchi Babu told ET.
Babu said the reserve price was kept at Rs 9.75 crore and the bidders were asked to ensure an earnest money deposit of Rs 1 crore to participate in the e-auction, which is scheduled to take place on October 17. The said aircraft is currently at New Delhi's India Gandhi International Airport and the interested registered bidders would be permitted to inspect the aircraft prior to the auction on October 9.
The publisher of English dailies Deccan Chronicle, Financial Chronicle and Asian Age and Telugu daily and weekly Andhra Bhoomi has been in news since July 2012 when its financial woes came to the fore. More than a dozen lenders, both public and private, knocked on the doors of various courts across the country and DRT seeking to recover their debts running into nearly Rs 4,000 crore.
DCHL's lenders include host of financial institutions such as Canara Bank, Corporation Bank, Indian Overseas Bank, Central Bank of India, Andhra Bank, Jammu & Kashmir Bank, IFCI, LIC, Axis Bank ICICI Bank, HDFC Bank, Future Capital, Religare Finvest, Kotak Mahindra Bank Tata Capital Ltd, PVP Capital Ltd, National Pension System Trust and Yes Bank Ltd, among others.
Following the plea by one of the lenders, Canara Bank, which suspected an accounting fraud, the country's premier investigating body Central Bureau of Investigation last year initiated a probe into DCHL books and registered cases against the company and promoters.
Several lenders have also moved against each other claiming rights over the assets mortgaged by the DCHL promoters including titles and trademarks of Deccan Chronicle, Asian Age, Financial Chronicle and Andhra Bhoomi. Some lenders even exercised the option over the assets charged to them and took possession of them after the company and promoters failed to clear their dues.
The move comes months after ICICI Bank, one of the key lenders of the media house, approaching the DRT accusing the DCHL promoters of defaulting on loans of some Rs 500 crore.
The Hawker 400 is a twin-engine jet corporate aircraft, which was imported from the US based Raython Aircraft Company in 2007.
During April last year, ICICI Bankhad moved a local court in Hyderabad against the Deccan Chronicle promoters after a cheque issued for Rs 350 crore by them bounced. ICICI was among dozen odd lenders that dragged the DCHL promoters to various courts involving defaults and cheque bounces.
"DRT has ordered auctioning the corporate jet of Deccan Chronicle on June 2 and we have accordingly sought bids from interested parties through e-auction process," the tribunal appointed advocate commissioner K. Buchi Babu told ET.
Babu said the reserve price was kept at Rs 9.75 crore and the bidders were asked to ensure an earnest money deposit of Rs 1 crore to participate in the e-auction, which is scheduled to take place on October 17. The said aircraft is currently at New Delhi's India Gandhi International Airport and the interested registered bidders would be permitted to inspect the aircraft prior to the auction on October 9.
The publisher of English dailies Deccan Chronicle, Financial Chronicle and Asian Age and Telugu daily and weekly Andhra Bhoomi has been in news since July 2012 when its financial woes came to the fore. More than a dozen lenders, both public and private, knocked on the doors of various courts across the country and DRT seeking to recover their debts running into nearly Rs 4,000 crore.
DCHL's lenders include host of financial institutions such as Canara Bank, Corporation Bank, Indian Overseas Bank, Central Bank of India, Andhra Bank, Jammu & Kashmir Bank, IFCI, LIC, Axis Bank ICICI Bank, HDFC Bank, Future Capital, Religare Finvest, Kotak Mahindra Bank Tata Capital Ltd, PVP Capital Ltd, National Pension System Trust and Yes Bank Ltd, among others.
Following the plea by one of the lenders, Canara Bank, which suspected an accounting fraud, the country's premier investigating body Central Bureau of Investigation last year initiated a probe into DCHL books and registered cases against the company and promoters.
Several lenders have also moved against each other claiming rights over the assets mortgaged by the DCHL promoters including titles and trademarks of Deccan Chronicle, Asian Age, Financial Chronicle and Andhra Bhoomi. Some lenders even exercised the option over the assets charged to them and took possession of them after the company and promoters failed to clear their dues.
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