Could the strange twists and turns in the relationship between the Deccan Chronicle and Kishore Biyani-controlled Future Capital be simply coincidental?

In December, a news report stated that Deccan Chronicle Holdings Ltd (DCHL) had bought over promoters' stake in Future Capital for Rs 700 crore.

While the promoters for DCHL - the Reddys - denied it, it turned out less than eight months later, it was Future Capital that was sitting on a lien on DCHL shares, amounting to over half (54 per cent) of Deccan Chronicle's net worth, being held as collateral against a Rs 170-crore loan to the newspaper group.

In a further complication, the depository participant who was supposed to be holding these DCHL promoter shares and executing the loan-cum-lien agreement, says it holds only around half these shares: A portion has already been released and moved to another depository upon the request of the promoters of DCHL.

How did the Reddys, with their opulent lifestyle and ambitious, high-profile, new ventures in sports and aviation, as well as top political connections, fall from grace?

Text: Prashanth Chintala, B Dasarath Reddy and N Sundaresha Subramanian, Business Standard

Image Courtesy: Deccan Chargers