CBI moves Delhi HC against statutory bail granted to ABG Shipyard's Rishi Aggarwal

New Delhi [India], December 10 : The Central Bureau of Investigation (CBI) has moved the Delhi High Court against a trial court order granting statutory bail to ABG Shipyard's former Chairman and MD Rishi Kamlesh Aggarwal in an alleged bank fraud case to the tune of Rs 22,842 crores.
The bench of Justice Yogesh Khanna is scheduled to hear the CBI plea on December 12.
On December 8, 2022 trial court judge passed an order stating that the investigation on the role of Public Officials has been kept pending by the CBI as approval us 17A of the PC Act is yet to be taken from the concerned authorities and as such, the charge sheet qua them for the offences under PC Act will be filed later on.
The Court stated that, after considering the facts and law as discussed above that the chargesheet as filed by the CBI, in this case, is incomplete and the applicant is entitled to the desired relief.
It has been alleged by CBI that Rishi Agarwal and other Accused Persons, entered into a criminal conspiracy to cheat the consortium banks comprising State Bank of India and others causing wrongful loss of Rs 22,842 Crores approx and siphoned off and diverting the funds to overseas companies.
Rishi Agarwal was arrested on September 21 this year by CBI and the central body filed a Chargesheet against him on the 60th day of his arrest on November 19.
The CBI filed the charge sheet against 24 other accused persons and entities.
Rishi Agarwal through his counsel had on 21.11.2022 first filed a Bail Application claiming statutory bail on the ground that no charge sheet has been filed as the same had not been placed before the Court.
Subsequently, an additional bail application was filed on November 26 claiming that the said charge sheet was an incomplete charge sheet and therefore, no Chargesheet as defined under the law has been filed within the period of 60 days.
Advocate Vijay Aggarwal appearing for Rishi Agarwal argued that the main contention was that the FIR was registered against Rishi Agarwal and others under Section 120-B, 420, 409 r/w Section 13(2) r/w 13(1) (d) of the Prevention of Corruption Act, however, Chargesheet has not been filed by CBI under the provisions of Prevention of Corruption Act as Sanction against Public Servants u/s 17A of PC Act is awaited and therefore, in terms of the settled law as reiterated recently by High Court of Delhi in the case of Chitra Ramakrishna in the NSE Fraud case was that the Chargesheet has to be filed in respect of all the offences alleged in the FIR.
Aggarwal further argued that further investigation on material aspects such as the diversion of funds to overseas companies is also pending including fraudulent issuance of Bank Guarantees, manipulation of equity contribution by Promoters etc.
Aggarwal further argued that three persons named in the FIR have not been made an accused and the chargesheet is silent as to whether their role was investigated or they have been absolved which further shows that the chargesheet is incomplete.
The agency had registered the case on February 7 this year under the IPC and the Prevention of Corruption Act on a complaint from the State Bank of India. SBI in its complaint had alleged that the accused had cheated the consortium of 28 banks, led by ICICI bank, causing fraud of Rs. 22,842 crores (approx).
"Huge amounts were allegedly transferred by the accused to its related parties and subsequently adjustment entries were made. It was also alleged that funds from banks were diverted to purchase huge assets in the name of its related parties. The account of the said company turned NPA on November 30 in 2013 and the majority of loan disbursement allegedly happened between 2005 and 2013. The account was restructured under the CDR mechanism on March 27 in 2014. However, the operations of the company could not be revived," the CBI official said.
Earlier in September, ED attached assets worth Rs 2,747.69 crore in the case.
The attached assets include Shipyard at Surat and Dahej located in Gujarat, agricultural lands and plots, various commercial and residential premises in Gujarat and Maharashtra and bank accounts owned by ABG Shipyard Ltd, its group companies and other related entities.