The Central Bureau of Investigation on Friday booked Deccan Chronicle Holdings Limited and its chairperson T Venkatram Reddy for allegedly cheating United India Insurance Company Limited of Rs 30.5 crore, ANI reported on Friday. The investigating agency named Mumbai-based private firms CARE Rating Ltd and Infrastructure Development Finance Co Ltd and two former officials at the insurance firms in the first information report that it filed on Friday.

United India Insurance Company Limited has filed a complaint against Deccan Chronicle Holdings. The CBI said two of the insurance firm’s officials, deputy general manager A Balasubramanian and chief manager KL Kunjilwa, allegedly made suspicious investments in the “privately placed short-term unsecured redeemable non-convertible debentures issued by Deccan Chronicle Holdings Limited in 2011 in violation of the regulations”.

The two officials, allegedly misused their roles as public servants, to make investments which were not repaid by Deccan Chronicles Holdings Limited.

The FIR said: “The investments were made in three different occasions deliberately in order to by-pass the investment committee of United India Insurance Company Limited. Thus the insurance firm invested Rs 30 crore in Deccan Chronicle Holdings. United India Insurance Company Limited relied on the rating awarded by CARE Ratings Ltd.”

The investigating agency said Care Rating Limited had downgraded its rating of the investment in 2011 from PR1+ to D within one year. PR1+ represents superior capacity for repayment of short term promissory obligations. Instruments with D ratings are in default or are expected to be in default or maturity.