Kotak Mahindra Bank turns the heat on Deccan Chronicle

Hyderabad-based Deccan Chronicle Holdings Ltd which is battling a 4,000 crore debt burden is facing fresh trouble from its lenders. Kotak Mahindra Bank has slapped a possession notice for immovable property of nearly 9900 sq yards or 30,000 sq feet belonging to Deccan Chronicle in Kondapur, Hyderabad. The notice has been issued after Deccan Chronicle failed to meet a 60 day deadline to repay dues of 50 crore rupees. The notice says that " Kotak Mahindra Bank has taken symbolic possession of the property", cautions Deccan Chronicle not to deal with the property and adds that " any dealings with the property will be subject to the charge of Kotak Mahindra Bank."

A lawyer familiar with Deccan Chronicle said the company may move a local court to challenge the notice. On 25th October, 2012, Deccan Chronicle had received a demand notice asking for Rs 50 crore debt along with interest. When contacted, Deccan Chronicle promoters remained unavailable for comment while Kotak Mahindra Bank declined to comment.

The latest development was first reported by ET Now.