Andhra Bank is planning to approach the Debts Recovery Tribunal(DRT) against Deccan Chronicle Holdings Limited(DCHL) for defaulting on payment of Rs 200-crore loan to the lender.
“We are planning to initiate legal action against the company in the next 15 days to 3 weeks’ time,” BA Prabhakar, chairman and managing director of Andhra Bank, told Business Standard on Wednesday. The legal action would be by way of approaching the DRT for the recovery of the loan through actions like attachment of properties mortgaged by the media company, according to him.
The bank’s decision to pursue legal course against the Hyderabad-based company comes close on the heals of a similar action initiated last week by another public sector entity Canara Bank, which also told the DRT that the company had re mortgaged the properties to other banks besides defaulting on payment.
