3 July 2019: The Ahmadabad bench of the Debt Recovery Tribunal (DRT) has directed Rishi Agarwal, the promoter of ABG Shipyard, to disclose details of his personal assets and foreign travel. The tribunal has also asked ABG Shipyard to give details of any interest-free loans it has given to the promoter and the status of the loan recovery.
IDBI Bank, to which the company owes about Rs 3,316 crore, had approached the DRT to direct the promoter to disclose these details. The bank had lent money under a master restructuring agreement approved under the corporate debt restructuring scheme.
“The bank has filed this case on the bases of apprehension that the respondent No 2 (Rishi Agarwal) would leave the country,” Vinay Goel, the presiding officer of Ahmadabad DRT-2, said in his order of June 22. “The bank may file an appropriate application before the passport authorities in accordance with laws.”
Gujarat-based ABG Shipyard was part of the so-called first list of 12 large debtors that the Reserve Bank of India had sent to banks, seeking their debt resolution under the Insolvency and Bankruptcy Code. The company currently owes more than Rs 16,000 crore to its lenders. In April, the National Company Law Tribunal had ordered the liquidation of the company in the absence of any viable revival plan. The DRT has directed Agarwal to disclose details of all his properties situated in India and abroad, and of business abroad where he owns a more than 20% stake.
The tribunal will hear the matter next on August 1, 2019, by when these details must be submitted.
Nishit Dhruva, the managing partner of law firm MDP & Partners who is appearing for IDBI Bank in the case, confirmed the development but refused to divulge details since the matter is in court. Sundaresh Bhat, a partner and the leader of resolution process advisory at consultancy BDO, who is the liquidator of the company, declined to comment.