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Lenders may take legal action against Deccan Chronicle Holdings after audit

Lenders may take legal action against Deccan Chronicle Holdings after audit

Lenders to Deccan Chronicle Holdings (DCHL) would take a joint decision on future action once the forensic audit report of the company is submitted.

Canara Bank has an exposure of Rs 330 crore to DCHL Canara Bank has an exposure of Rs 330 crore to DCHL
Lenders to Deccan Chronicle Holdings (DCHL) would take a joint decision on future action once the forensic audit report of the Hyderabad-based company is submitted.

"Probably we may initiate ... we may take legal action," Canara Bank Executive Director A K Gupta said. "Probably this month it (report on the forensic audit of Deccan Chronicle Holdings by Deloitte will be ready) must come, let's see," he added.

Canara Bank would be in touch with other lenders and take a joint decision on what needs to be done "in this case".

"A joint decision will be taken," he said.

Canara Bank has an exposure of Rs 330 crore to DCHL, he said. In the second quarter, the bank has made a provision of Rs 225 crore following the "slippage" on this account, Gupta added.