CBI files case against DCHL, insurance co

The Central Bureau of Investigation (CBI) has filed a case against Deccan Chronicle Holdings Ltd (DCHL), its chairman T Venkatram Reddy, CARE Rating Agency and officials of United India Insurance Company (UIIC) for allegedly causing wrongful loss of Rs 30.54 crore.

The agency also named Infrastructure Development Finance (IDFC) in its case.

The agency stated that then Deputy General Manager A Balasubramanian and then Chief Manager KL Kunjilwar of the UIIC made suspicious investments in the privately placed short-term unsecured redeemable non-convertible debentures issued by DCHL in 2011 in violation of the regulations.

Balasubramanian and Kunjilwar allegedly entered into a criminal conspiracy at Chennai and other places to cheat UIIC and abused their official position as public servants by making the investments which was not repaid by DCHL, causing loss of Rs 30. 54 crore.

The FIR stated: "Between July to October 2011, three office notes were put up by Kunjilwar for investment of Rs 10 crore each in 11.25 per cent unsecured non convertible debentures issued by DCHL for purchase of short term unsecured debentures with 364 days maturity without analyzing the proposal in detail and the same was approved by Balasubramanian."