Hyderabad police are yet to complete the investigation into a criminal case filed against the promoters of Deccan Chronicle Holdings Limited (DCHL) in August last year based on a complaint by Karvy Stock Broking Limited.
The Central Crime Station (CCS) police had registered an FIR against the promoters after Hyderabad-based Karvy alleged that a letter purported to have written by it to Future Capital Holding Limited confirming the availability of DCHL shares in depository accounts was forged.
Mumbai-based Future Capital (FCHL) had a lien on DCHL shares against Rs 170 crore loan given to the company. Karvy had transferred those shares to another firm after DCHL promoters informed that their agreement with FCHL was terminated.
But, according to the FIR, the letter that was sent to FCHL on Karvy's letterhead had confirmed the availability of shares in the depository accounts.
The investigation team is still waiting for one of the promoters and an official of the company to give their handwriting specimens.
“Fresh notices were issued to them recently and they are expected to present themselves before the police within 10 days. The investigation report will be completed only after the specimens of their handwriting are collected and compared with the letter, which Karvy alleged as a forged one,” the sources said.
They said the promoters had sought more time to appear before the investigating officers stating they were busy preparing financial statements.
In course of investigation, the police came to know that Future Capital had also kept 13 properties belonging to DCHL as collateral for the above loan in addition to these shares, according to sources.
The case had been registered under Sections 420 (cheating), 468 (forgery for the purpose of cheating), 406 (criminal breach of trust), 471 read with 34 (using as genuine a forged document, acts done by several persons in furtherance of common intention) of the Indian Penal Code(IPC). But, the main question is whether the letter was forged, according to a police official.
While it is not possible to guess as to what is in store for DCHL promoters in the Karvy case, they now have to prepare for a fresh round of investigation by Chennai police in yet another case registered against them by Photon Infotech, which alleged that DCHL along with Infrastructure Development Finance Corporation (IDFC) had indulged in a criminal conspiracy to cheat investors.