Companies & Sectors
Deccan Chronicle’s appeal for sick unit rejected by BIFR

Deccan Chronicle Holding concealed several facts like its status as newspaper publisher, links with IPL team, criminal cases against its chairman and action taken by lenders under SARFAESI Act, which resulted in BIFR rejecting its appeal

Deccan Chronicle Holdings Ltd (DCHL), the controversial Hyderabad-based group, which runs newspapers and once owned a cricket team in the Indian Premier League (IPL), has had its application rejected under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). More importantly, in a hard-hitting rejection order the group was told that while it approached SICA as an industrial undertaking, each of its units was registered as a newspaper and hence outside the purview of the Act.

 

The Appellate Authority at the Board for Industrial and Financial Reconstruction (BIFR), said, “The Central Bureau of Investigation (CBI) has registered a case against DHCL chairman T Venkatram Reddy for criminal conspiracy, cheating and forgery after finding several irregularities in the balance sheet of the company in a forensic audit.”

 

The registrar of BIFR while withdrawing Deccan Chronicle's registration had stated that the Ministry of Corporate Affairs (MCA) was inquiring into the alleged violations of Company Law by DCHL and this was concealed by the company while submitting its reference.


"On perusal of records, it is also observed that the company had ignored the mandatory provisions of law by not excluding from the relevant Balance Sheet such amounts, which pertains to those properties against which Indiabulls Housing Finance Ltd (IHFL) and other secured creditors have taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Thus the Balance Sheet on the basis of which the purported reference was made (to BIFR) was false and improper," the order said.

 

BIFR noted that DCHL in support of its claim of being an industrial undertaking has failed to submit a copy of relevant certificate issued by the Secretariat of Industrial Assistance. "Although the company is primarily in the business of newspaper, it had filed the reference showing its business to be that of printing which was completely misleading and factually incorrect. It is public knowledge that till recently DCHL operated the Hyderabad team of IPL and also runs more than 50 Odyssey stores across Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra and Delhi NCE dealing with consumer lifestyle products like books, music, stationery, gift and toys," the order said.

 

Deccan Chronicle had stated that action under Section 13(4) of SARFAESI Act had been taken only to the tune of 9.78% of its securities. However, the BIFR said, "a large number of secured creditors including India Bulls, Canara Bank, Kotak Mahindra, JM Financial, IDFC and State Bank of India (SBI) have confirmed that have initiated SARFAESI action individually against the company much more that what had been stated by DCHL."

 

"Notwithstanding the above it is also observed that DCHL made its reference (to BIFR) after action under Section 5(1) of the SARFAESI Act has been taken by JM Financial Asset Reconstruction Co Pvt Ltd and Pegasus Assets Reconstruction Pvt Ltd. This reference was, therefore filed in violation of Section 15(1) of the SICA, which states that, 'no reference shall be made to the BIFR after the commencement of the SARFAESI Act, where financial assets have been acquired by any securitization company or reconstruction company under sub-section (1) of the Section 5 of the Act'," the BIFR said in its order.

 

Here is the detailed order issued by BIFR against Deccan Chronicle...

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COMMENTS

myadvtcorner

3 years ago

As a south-Indian daily, http://www.myadvtcorner.com/newspaper/de...">Deccan Chronicle has the fifth largest circulation among English publications in India. With editions in Karnataka, Andhra Pradesh, Kerala and Tamil Nadu, its major support is from urban areas of southern India. It is a cost-effective medium for advertising in south India. via myadvtcorner

V Balakrishnan the ‘keen anchor-builder’ of Infosys resigns
According to Narayana Murthy it is difficult to imagine Infosys without Bala's passion, commitment and intellect
 
V Balakrishnan, who was with Infosys Ltd since 1991 and served the information technology (IT) company in various capacities, had resigned. This is yet another high profile exit from Infosys after the return of NR Narayana Murthy as its executive chairman.
 
In a regulatory filing, Murthy, the chief of India's second-largest software services provider, said, "Bala has been an early adopter and a keen anchor-builder of Infosys. It is difficult to imagine Infosys without Bala's passion, commitment and intellect."
 
Balakrishnan was head of Infosys BPO, Finacle, and India Business Unit as well as chairman of Infosys Lodestone. 
 
Balakrishnan's exit follows several senior-level departures from the IT company since Murthy returned in June as its executive chairman.
 
On Thursday Subrahmanyam Goparaju, senior vice president and a member of Infosys' executive council resigned. Goparaju was heading Infosys Labs, the research and innovation division of the company.
 
In July, Infosys' global sales head Basab Pradhan quit. In August, Ashok Vemuri, the company's global manufacturing head joined rival iGate as chief executive. In November, Stephen Pratt, who co-founded Infosys consulting also stepped down. 
 
Infosys also announced the induction of Kiran Mazumdar-Shaw as an independent member of the Board. UB Pravin Rao was inducted as a whole-time director.

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COMMENTS

nagesh kini

3 years ago

The quiting of so many veterans, more particularly of Bala variety in quick succession goes to indicate that there certainly wrong and is something much more than meets the eye - "Dal mey kuch to kala hai"!

nagesh kini

3 years ago

The quiting of so many veterans, more particularly of Bala variety in quick succession goes to indicate that there certainly wrong and is something much more than meets the eye - "Dal mey kuch to kala hai"!

Suiketu Shah

3 years ago

There is a serious campaign to malign Infosys by probably its competitors.Its share price has risen by more than 50% in last 6 months(in a very stagnant equity market and that is putting it mildly).However,very few "experts" recommend Infosys.

A lion never says hes a lion,everyone knows he is.This is the case with Infosys esp with NM's son Rohan as his succesor.

REPLY

nagesh kini

In Reply to Suiketu Shah 3 years ago

NM's son is stated to be his "Executive Assistant".
He might as well been inducted as an Additional Director if he was meant to be designated his 'successor'.

Suiketu Shah

In Reply to nagesh kini 3 years ago

Mr Kini

We agree to disagree."Daal mein kuch kala nahi hain".Its matters which family businesses know and the owners of family businesses only know.Inspite of so many seniors leaving Infosys,the company is at alltime high.Look at Hexaware.Even with the weak rupee its still same levels as before,nothing much.

Have a nice weekend Mr Kini.

Sensex, Nifty to continue uptrend: Friday closing report
As long as Nifty maintains itself above 6,220, the upmove would continue
 
On Thursday, we mentioned that a close above 6,235 may bring back the Nifty on an upward trend. Post the Reserve Bank of India (RBI) move to keep the key rate unchanged and global markets either stable or in a rallying mode for the second day after the US announced its tapering, the Indian market bounced back with force. Opening in the green the indices on Friday remained in the positive for the entire session. By the end of the session the Sensex hit a seven day (including today) high while the Nifty hit a six day (including today) high. 
 
Sensex opened Friday at 20,792 while the Nifty opened at 6,180. The Sensex moved from the level of 20,746 to the level of 21,118 and closed at 21,080 (up 371 points or 1.79%) while the Nifty hit a low of 6,170 and closed at 6,274 (up 108 points or 1.74%) after hitting a high of 6,285. The NSE recorded a volume of 69.08 crore shares.
 
All the other indices on the NSE closed in the positive. The top five gainers were Energy (3.46%); Realty (2.84%); Smallcap (2.45%); Finance (2.31%) and PSE (2.16%).
 
Of the 50 stocks on the Nifty, 45 ended in the green. The top five gainers were Reliance Industries (4.79%); ONGC (4.33%); Wipro (3.98%); HDFC (3.79%) and M&M (3.53%). The bottom four losers were Sun Pharma (0.72%); Sesa Sterlite (0.66%); Grasim (0.43%) and Power Grid (0.25%).
 
Of the 1,229 companies on the NSE, 829 closed in the positive, 335 closed in the negative while 65 closed flat.
 
The Reserve Bank of India plans to sell retail inflation-linked savings certificates from December 23rd to 31st, although it may close sales earlier than scheduled, the central bank said on Thursday. The debt will be pegged to consumer price inflation with a three-month lag in calculating the interest rate plus a fixed rate of 1.5 per cent. Thus, December sales will be pegged to September CPI.
 
US Indices closed flat on Thursday. 
 
Asian indices had a mixed performance. Straits Times was the top gainer which rose 0.79% while Shanghai Composite was the top loser which fell 2.02%.
 
The Chinese central bank said at the close of market trading yesterday that it added funding to selected lenders using short-term liquidity operations. 
 
The Bank of Japan kept its asset-purchase levels and overall monetary policy unchanged after a monetary policy review.
 
European indices were trading in the green while the US Futures were trading marginally higher.
 
In Europe, the European Union lost its top credit rating from Standard & Poor's, which said the group's cohesion has weakened and its financial profile has deteriorated. S&P cut its long-term rating on the EU to AA+ from AAA and maintained its short-term rating at A-1+. The outlook is stable, the agency said in a statement today.
 
Among the market news, SEBI has rationalised the periodic call auction mechanism by modifying how it classifies the so-called illiquid stocks. A stock would now be classified as illiquid if its average daily turnover is less than Rs2 lakh in the previous two quarters and if it is classified as illiquid at all the exchanges where it is traded. Call auctions will not apply to shares where a company is profitable in at least two of the past three years and not more than 20% of promoters' shareholding is pledged in the latest quarter and the book value is three times or more than the face value. The new rules also exclude companies with a market capitalisation of at least Rs10 crore or which have paid a dividend in at least two of the past three years. From now, stock exchanges will determine the number of call auction sessions for illiquid stocks. Exchanges will, however, have at least two sessions in a trading day, with one uniform closing session across the exchanges. 

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