Agri Gold takeover delay irks HC

Expressing displeasure at the undue delay, the Hyderabad High Court on Tuesday directed accounting firm Deloitte to constitute three teams to examine documents relating to Agri Gold Group of Companies that are in the custody of the AP CID as part of due diligence exercise for the takeover of the company by Essel-Zee Group’s Subhash Chandra Foundation.

A division bench comprising Justice V. Ramasubramanian and Justice S.V. Bhatt directed Deloitte to send members of the team simultaneously to the CID headquarters, the corporate office of Agri Gold Companies and to Eluru Jail to interact with the directors lodged there on October 12 at 10 am and begin the exercise.

The bench made it clear that the exercise must continue on a day-to-day basis and all agencies must extend cooperation.

The bench was hearing a PIL by the depositors and agents seeking a CBI probe into the Agri Gold scam.

Deloitte had filed an intervention application in the case on behalf of Subhash Chandra Foundation that has expressed interest in taking over Agri Gold.

Counsel for Deloitte informed the court that so far they could only correspond with the agencies concerned and actual examination of documents work has not yet started. He placed a letter by AP CID asking for specific list of documents so that they can be shared with Deloitte.

The bench expressed dissatisfaction at the loss of precious time due to nonimplementation of its earlier order in which it had directed the firm and the CID to ensure that the examination of documents shall take place on a daily basis from October 3 in order to avoid unnecessary delays

The bench found fault with the CID for raising queries when the order of the court was clear about making available all documents related to Agri Gold to the Deloitte, except those necessary for criminal prosecution. The bench posted the case October 24.

THE HC had earlier ordered examination of documents of Agri Gold on a daily basis from October 3