Vice chairman of Deccan Chronicle (DC) group, PK Iyer was arrested by Police Commissionerate of Bhubaneswar-Cuttack from a five-star hotel in the City late on Friday night in connection with a financial fraud.
Iyer, who was arrested at 2.30 am, is allegedly invovled in a case of bank fraud registered in Hyderabad. He was absconding for several months and a non-bailable warrant of arrest had been issued against him. Acting on a tip-off by the Odisha Intelligence Wing, a team headed by Bhubaneswar DCP Satyabrata Bhoi arrested Iyer from a suite in Trident Hotel.
Iyer had been staying in the hotel on a fake identity for the last two months. Soon after the arrest, city police handed over Iyer to the CBI. Iyer is an accused in a financial fraud involving a loan of Rs 357 crore from Canara Bank. CBI has filed a case under several sections of the IPC against three promoters of the DC group, including chairman T Venkantram Reddy, managing director T Vinayak Ravi Reddy and Iyer in this connection. Venkatram and Vinayak were arrested by the Central agency in February this year.
DC group owes more than Rs 4,000 crore to several hundred investors, CBI sources said. On January 22, a special court for Economic Offences had summoned Iyer in connection with a complaint filed by the Registrar of Companies, Hyderabad, for not filing annual returns since 2011.