The Bombay High Court has ordered media firm Deccan Chronicle Holdings Limited (DCHL) and its promoter T Venkattram Reddy to give security of 101 crore to its lender Tata Capital within four weeks.

In March 2011, Tata Capital had lent Hyderabad-based DCHL 100 crore against a personal guarantee by T Venkattram Reddy, a promoter of the company.

Tata Capital had asked the company to repay the entire loan amount after the company defaulted on short-term non-convertible debentures and suffered a rating downgrade.

The lender asked the media company to cure the material adverse effect but received not response. Tata Capital then dragged the beleaguered company to court.

Following a protracted hearing, Justice R D Dhanuka of the Bombay High Court ordered DCHL to give a security of Rs 101 crore within four weeks.

The Justice also warned that the court would appoint a receiver to take possession of the company's certain properties in case the company fails to abide by its order.

Emerging reports also suggest that banks may have to write off nearly Rs 3,000 crore in case DCHL lacks sufficient collateral cover. More than twenty banks, including ICICI Bank, Axis Bank, Canara Bank, Yes Bank and Corporation Bank, are trying to recover loans from debt-laden DCHL.