PINAKI MAJUMDAR
Jamshedpur, Sept 12: The Jamshedpur Sessions Court has rejected the anticipatory bail plea of Shashi Agrawal, former liquidator of Incab Industries Limited, in the alleged Rs 2,000-crore financial fraud linked to the company.
Judge Vaishali Srivastava, while dismissing the plea, ruled that the case involves a serious and organized economic offence that cannot be equated with ordinary fraud.
The court stressed that such crimes undermine the economy and bail in such matters should be granted only under exceptional circumstances, citing Supreme Court precedents.
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Background
Founded in 1920 by the British Indian Cable Company, Incab Industries once flourished on over 15,000 acres in Jamshedpur but went bankrupt in the 1990s, leaving workers unpaid.
Allegations later surfaced that businessman Ramesh Gowani and associates, with Agrawal’s collusion, inflated the company’s debt from Rs 21.63 crore to nearly Rs 2,000 crore through shell firms like Pegasus Assets Reconstruction and Tropical Ventures.
The NCLT ordered liquidation in 2020. In 2021, the NCLAT declared Gowani’s directorship illegal and removed Agrawal as liquidator, terming him a “fraudster.”
The Supreme Court upheld this order, prompting the Insolvency and Bankruptcy Board of India (IBBI) to cancel Agrawal’s registration.
The Case
Agrawal is Accused No. 21 in Complaint Case No. 2227/2021, facing charges under IPC sections 409, 120B, and 34. Prosecutors allege he ignored NCLT directives, colluded with Gowani, and facilitated fund diversion, impacting over Rs 300 crore in workers’ unpaid wages.
His counsel argued that the case fell under company law, not criminal law. But the court found sufficient grounds to deny protection, noting Agrawal’s role in the conspiracy.
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Impact
The order has boosted the morale of former Incab workers, who see it as long-awaited recognition of their struggle.
Experts believe the judgment sets a new benchmark for accountability of insolvency professionals in economic crimes.
