Bharat Ram, who was addressing shareholders at the company's annual general meeting, said that both the businesses would be hived off into separate companies and then 49 per cent stake divested. The AGM of DCM witnessed stormy scenes with shareholders threatening legal action against the company and its directors over alleged financial irregularities.

Besides, the company also plans to hive off partial or total equity in another group company -- DCM Datasystems under a restructuring programme within the next three months.

Admitting that the company was caught in a debt-trap, Bharat Ram said the group has already initiated talks with financial institutions on the restructuring programme. "We are presently conducting several inter-institutional meetings for finalising therestructuring programme, which may take up to three months. Once that is finished, we would approach the high court for a formal approval and then go ahead with the restructuring,'' said Bharat Ram.

Attributing the company's debt position to the slow progress of the real estate development of the company, Bharat Ram said the restructuring plan is being designed to also reschedule debt to correspond to real estate cash flows.

The company plans to utilise the capital generated through the hiving off of the two businesses to put the loss-making core business of real estate on the growth track.

The AGM was disrupted several times by agitated shareholders who blamed the company's promoters of mismanagement and for its slipping into the red. A section of the share-holders said that they would move the Securities and Exchange Board of India (SEBI) and initiate an investigation into the company's books of accounts over "bungling of funds''.

The share-holders were disturbed with the non-payment of dividend andaccused the company of not maintaining records and evading taxes, besides concealing facts from the shareholders. Some even accused the company of raising the remuneration to the relatives of the Bharat Rams, while the equity holders were not being paid the dividends.

Pacifying the irate shareholders, Bharat Ram said: "I assure you that there are no financial irregularities in the company.'' Steps are being aken to see that the company comes out of the red, he added.