Infrastructure Development Finance Company (IDFC) on Monday said it will take legal action to protect its interest and clarify its position in Deccan Chronicle case following a First Information Report (FIR) against the lender and some others.
"This is a frivolous legal action. We haven't even sold the paper to the party concerned. So, we will take all appropriate legal action, clarify our position and protect our interests," said Rajiv Lall, vice chairman and managing director.
Earlier, a company named as Photon Infotech had filed FIR against IDFC's officials saying that it was well aware of Deccan's bankruptcy but didn't disclose it and sold commercial papers (CPs) to them in that situation. Photon also lodged the FIR against Deccan Chronicle Holdings Limited (DCHL) whose CPs it had bought.
On the matter of issuing CPs Lall said "We bought the paper ourselves. If we had known, we wouldn't have bought it (CP) and we couldn't avoid our own losses, so it is absurd to suggest that knowingly we sold it to somebody else."
He also claimed no paper had been sold to Photon directly from IDFC and it was sold by the intermediary. "No paper has been sold to this particular party (Photon) directly from us," he said.