The promoters of ABG Shipyard , one of the top 12 loans directed to be tried under the bankruptcy tribunal, face criminal proceedings after a Mumbai court ordered a police investigation on a complaint of criminal conspiracy filed by Standard Chartered Bank.The Metropolitan Magistrate's Court, Bandra, has ordered an investigation against ABG Shipyard by Mumbai's Bandra Kurla police station as the company failed to repay Rs 200 crore to the lender. Rishi Agarwal is the promoter and chairman of ABG Shipyard.“The complaint discloses cognizable offences. This complaint is necessary to be investigated by the police,“ Vishwas Mane (Metropolitan Magistrate) wrote in the court order. “Therefore, the original complaint along with documents (needs to) be sent to police inspector of B.K.C police station, for investigation.“Standard Chartered Bank, one of the lenders, filed a complaint a year ago with the Economic Offenses Wing (EOW), Mumbai police, through its legal consultant MZM Legal. It is part of the 13-bank consortium-led by ICICI Bank ABG has a total outstanding debt of Rs 16,400 crore to 22 lenders and the company is among the 12 firms identified by the central bank and referred to the National Company Law Tribunal (NCLT) bankruptcy proceedings under the Insolvency and Bankruptcy Code.Mahindra & Mahindra, Shapoorji Pallonji Group and Liberty House of the UK are competing to acquire debt-laden ABG Shipyard, with a consortium of lenders led by ICICI Bank seeking the sale to recover loans, ET had reported earlier.

Source: Economic Times October 25, 2017 04:41 UTC