Mumbai,
February 2:
Axis
Bank expects to recover ₹100 crore from the financially troubled
Deccan Chronicle Holding Ltd (DCHL)
as it has filed a cheque bouncing case against the publisher.
Two
cheques worth ₹60 crore and ₹40 crore each submitted last year by
DCHL to Axis Bank had
bounced. Subsequently, the bank filed a case against DCHL
under Section 138 of the Negotiable Instruments Act.
“Section
138 is our Brahmastra (most lethal weapon used in Indian
mythology). It is a powerful tool with which we can at least recover
some of our dues,” said an official with the bank who didn’t want
to be named. Action under Section 138 leads to a non-bailable
warrant.
The
private sector lender had filed a case in the Andhra Pradesh High
Court against DCHL,
which owes it ₹409 crore.
The
bank has already attached the promoter’s personal property worth
₹60 crore. Multiple lenders are fighting for possession of the
Hyderabad-based DCHL’s
other attached properties.
Axis
Bank has named it a wilful defaulter. The bank official said that
borrowers often frustrate lenders by buying time through legal
extensions and reliefs.
The
official added that the debt-laden publisher was generating some cash
flows since it has been conducting its core operations without any
disruptions.
In
2012, the Hyderabad-based publisher has defaulted on total loans
worth about ₹4,200 crore taken from 28 lenders. The other lenders
include ICICI Bank with
largest exposure at ₹490 crore, followed by Axis Bank (₹409
crore), Canara Bank (₹360 crore), IDBI
Bank (₹260 crore), among others. Most lenders are fighting
litigations against the company in the Andhra High Court.
Earlier,
this month, DCHL’s
board approved the sale of shares to prospective investors on a
preferential allotment basis.
The
firm is hunting for strategic investors to rescue itself from its
liabilities.
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