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Wednesday, January 9, 2013

Kotak Mahindra serves possession notice on Deccan Chronicle press

Kotak Mahindra Bank has served a possession notice on Deccan Chronicle Holdings Ltd, publisher of English daily Deccan Chronicle, seeking payment of dues.

The notice for recovery of Rs 50.25 crore has been served under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and its rules calling upon the borrower to repay the amount together with the interest at contractual rates and other costs and expenses from August 16, 2012, till payment or realisation within 60 days from the date of receipt.

The notice stated that Deccan Chronicle Holdings failed to repay the amount, and the notice is hereby given to the borrower and the public in general that the bank has taken symbolic possession of the property admeasuring 9,892 sq. yards located at Kondapur in Andhra Pradesh, where it has a printing press.

The bank is learnt to have extended a loan of Rs 100 crore and has knocked at the doors of the debt-recovery tribunal to restrain the management from selling its assets to third parties and thereby secure its interests, including recovery of amount lent to the company.

Deccan Chronicle Holdings is faced with several petitions for recovery of dues, including winding-up petitions. Other lenders who have knocked at the doors of High Court and the debt-recovery tribunal include IFCI, ICICI Bank and IDFC.

GE Capital, to which some of the properties and machinery have been mortgaged by the company after the latter availed loans, has also secured a restrain order against the company. GE Capital had lent about Rs 100 crore and has approached the court to recover dues.


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