New Delhi: The Chairman of a Hyderabad-based English daily Deccan Chronicle T Venkatram Reddy was Saturday arrested by CBI in connection with alleged default of Rs 357 crore loan from Canara Bank.
CBI sources said the arrest was in connection with a case registered by it against the company Deccan Chronicle Holdings Limited in July 2013 on the basis of a complaint from Canara Bank, Bangalore.
The agency had registered a case of alleged cheating and criminal conspiracy against Venkatram Reddy in 2013. The Bank had refused to restructure the loan taken by the company that had remained unpaid.
Reddy was taken into custody by a CBI team from Bangalore after a brief questioning, sources said.
Vice Chairman and Managing Director of the company T Vinayak Ravi Reddy has also been arrested, CBI sources said.
Both were produced before a special judge at his residence who remanded them to 14 days of judicial custody.
Reddy's counsel A Chandrasekar termed the arrest illegal saying no notice was served to his client under section 41 of the CrPC.
He said a bail application will soon be moved before a competent court.
