In a significant legal development, the Federal High Court in Abuja issued an arrest warrant on Monday for Mr. Hathiramani Ranesh, the Managing Director of Dana Air, who is facing a criminal case tied to an alleged N13 billion fraud.
The decision by Justice Obiora Egwuatu comes in response to Mr. Ranesh’s repeated absence from court, where he was expected to respond to a six-count charge filed by the Federal Government of Nigeria.
The court’s directive for his arrest was anchored on Section 184 of the Administration of Criminal Justice Act (ACJA) 2015, which mandates the appearance of a defendant in court for criminal proceedings.
Justice Egwuatu stated, “The 1st defendant is bound to appear before the court, and if he does not, the court can issue a warrant for his arrest.
Accordingly, and relying on provision of the law, I hereby issue a warrant for the arrest of the 1st defendant.”
Mr. Ranesh, although absent from court, had instructed his lawyer, Mr. B. Ademola-Bello, to file a preliminary objection to contest the validity of the charges and question the court’s jurisdiction to handle the case.
However, the Federal Government’s legal representative, Ms. Mojisola-Okeya Esho, argued that a preliminary objection could not proceed without the defendant formally entering a plea on the charges against him.
The six-count charge, numbered FHC/ABJ/CR/101/2021, implicates Mr. Ranesh, Dana Group PLC, and Dana Steel Ltd., citing them as the 1st, 2nd, and 3rd defendants, respectively.
According to the Federal Government, the alleged crimes were committed between September and December 2018 at the Dana Steel Rolling Factory in Katsina.
The defendants, alongside other yet unidentified individuals, are accused of engaging in a conspiracy to misappropriate four industrial generators, including three units of 9,000 KVA and one of 1,000 KVA capacity.
These generators, worth over N450 million, were reportedly collateral assets under a Deed of Asset Debenture and held as security for a bond that remains active.
The government claims these assets were illegally converted and sold despite the agreement's terms.
In a separate charge, the defendants are accused of conspiring to divert a substantial portion of funds from a bond issued by Ecobank, designated to revive production at the Dana Steel Rolling Factory in Katsina. The Federal Government alleges that on April 7-8, 2014, the accused parties unlawfully redirected N864 million from these bond proceeds.
Rather than applying these funds towards factory production, the government contends that they were allocated for unauthorized purposes, including diversion to a separate account owned by Atlantic Shrimpers.
Specifically, N60.3 million from the bond’s funds was allegedly funneled into Atlantic Shrimpers' Access Bank account.
These cumulative financial manipulations amount to a staggering N1,374,300,000.
The charges, the government stated, are based on Section 516 of the Criminal Code Act, Laws of the Federation of Nigeria, 2004, under which conspiracy and fraudulent conversion of assets are punishable offenses.
During Monday's court session, the defense counsel argued that the 1st defendant, Mr. Ranesh, was not presently within Nigeria and that the other accused parties are corporate entities under his management.
Nevertheless, Justice Egwuatu, unswayed by this reasoning, held firm in his directive, emphasizing that Mr. Ranesh must be brought before the court for due proceedings. He instructed that Mr. Ranesh be arrested and presented at the next scheduled court date, set for January 13, 2025, allowing any objections to be raised at that time.
The case has drawn public attention due to its scale and the involvement of Dana Group, a major corporate entity in Nigeria’s aviation and manufacturing sectors.
The allegations touch on issues of corporate governance, financial responsibility, and the integrity of legal agreements in the private sector.
Fraudulent conversion of assets meant to support industrial production is particularly concerning, as it undermines investor trust and jeopardizes economic initiatives meant to foster growth and employment.
The Federal Government’s pursuit of justice in this case reflects its commitment to holding corporate leaders accountable for legal and financial transgressions.
Moreover, the case underscores the importance of corporate governance reforms in Nigeria, as the country seeks to attract foreign investments and strengthen its regulatory framework.
With Mr. Ranesh’s arrest order now in effect, his appearance before the court in January will likely serve as a focal point for further developments in the case.
If the Federal Government’s allegations prove substantiated, the implications for Dana Group and its associated entities could be substantial, impacting their operations and standing within the Nigerian business community.
The January hearing promises to be a significant one, as it will determine whether the court will proceed with the charges or dismiss them based on Mr. Ranesh’s preliminary objections.
Either outcome will carry ramifications for the ongoing discourse on corporate accountability and the rule of law in Nigeria’s business landscape.
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