Mr Krishnakumar Sitaram Agrawal, the current and former director of 27 companies which are collectively known as the Mansa Group, has pleaded guilty in the Sydney Downing Centre Local Court to criminal charges following an ASIC investigation.
Under s 254 of the Crimes Act, the offence of using false documents to obtain a financial advantage has a maximum penalty of 10 years’ imprisonment. Under s 184(2) of the Corporations Act, the offence of sentence involving use of a position dishonestly to obtain advantage or cause detriment has a maximum penalty of 15 years’ imprisonment.
Such legal actions are only available if the company is in Liquidation so the solution is to propose a DOCA that will be accepted and avoid the appointment of a Liquidator to your company.
Contact us to learn how to achieve an approved DOCA at voluntaryadministration.com.au/contact-us
Mr Agrawal pleaded guilty to one count of using false documents to obtain a financial advantage contrary to the Crimes Act NSW and one count (and admitted guilt to a further count) of using his position as director dishonestly to gain advantage and cause detriment contrary to the Corporations Act.
The charges relate to Mr Agrawal removing directors and shareholders of corporations within the Mansa Groups, which he controlled, without their knowledge, applying for and obtaining loans from third-party lenders on that basis and/or with the use of false documents and using the loans for the benefit of other corporations which he controlled.
This criminal action follows previous action by ASIC to secure travel restraints against Mr Agrawal and his wife following the collapse of the Mansa Group .
The matter was committed to the Sydney District Court for Mr Agrawal to be sentenced at a later date and will next be heard at Sydney Downing Centre District Court on 11 April 2025
The matter is being prosecuted by the Commonwealth Director of Public Prosecutions.
This is why we usually recommend Voluntary Administration and a successful DOCA over Liquidation.
