Canara bank trying to arm-twist DC honchos

Hyderabad: Disregarding a relationship spanning five decades, Canara Bank gave a criminal colour to what was purely a civil dispute with Deccan Chronicle Holdings Limited, to arm-twist and harass the company’s top officials with malafide intent.

During the last half a century, Canara Bank had advanced various loans to DCHL. Its own complaint acknowledges that DCHL had been regular in repaying the loans.
In 2012, the bank claimed certain defaults in repayments and initiated civil proceedings before legal foras including the Debts Recovery Tribunal. It also took action under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Sarfaesi Act) to recover its dues.

These unjust and illegal actions were challenged by DCHL in court. Canara Bank, with the intent of pressurising the company, in a malafide manner, filed a criminal complaint though the disputes were civil in nature. The bank had scrutinised DCHL’s balance sheets for several years while granting loans but never raised any objections or alleged that they were not reflecting the company’s financials.

It is only when certain alleged defaults took place that Canara Bank chose to point out alleged infirmities in the balance sheets. Clearly, these allegations were raised as an afterthought and the complaint was filed to unduly harass DCHL. The promoters of DCHL had provided additional collateral security to the bank, clearly showing that the promoters never had any intent of misappropriating funds.