The Nigerian government has intensified efforts to arrest Mr. Hathiramani Ranesh, the Managing Director of Dana Air, over an alleged N1.3 billion fraud.
The controversy stems from a six-count charge filed by the Federal Government against Ranesh, Dana Group PLC, and Dana Steel Ltd.
The case, which is being handled by the Federal High Court in Abuja, centers on accusations of financial mismanagement and fraudulent activities linked to a bond intended for the revival of Dana Steel Rolling Factory.
Allegations Against Ranesh
The allegations against Ranesh and his companies revolve around their involvement in the misappropriation of funds, industrial equipment, and fraudulent transfers. Specifically, between September and December 2018, Ranesh and others allegedly removed and sold four industrial generators valued at over N450 million.
These generators had been pledged as collateral for a bond that was meant to finance operations at the Dana Steel Rolling Factory. Despite the subsistence of the bond, the generators were reportedly converted for personal gain.
The charges also include the diversion of N864 million, meant for the revival of Dana Steel, to unapproved uses. This allegedly occurred in 2014 at the company’s premises on Oshodi-Apapa Expressway, Lagos.
Another N60.3 million, also part of the bond proceeds, was allegedly transferred to an Atlantic Shrimpers account at Access Bank.
Court Proceedings and Arrest Warrant
In October 2024, when the case was called before the Abuja court, Ranesh failed to appear for his scheduled arraignment.
His absence prompted the Attorney-General of the Federation (AGF), represented by counsel Mojisola Okeya, to request a bench warrant for his arrest. Okeya argued that Ranesh’s repeated failure to appear in court was obstructing the legal process and that the court should issue an arrest warrant to compel his attendance.
On the other hand, Ranesh’s legal team, led by Bidemi Ademola-Bello, has been challenging the court’s jurisdiction. They argued that the court could not proceed with the arraignment before addressing their preliminary objection. The defense maintained that the jurisdictional issue must be resolved before any further legal steps are taken.
However, the prosecution insisted that the arraignment must come first, in line with standard legal procedures.
Justice Obiora Egwuatu, the presiding judge, adjourned the case to November 4, 2024, for further hearing on whether the preliminary objection should be addressed before the arraignment. The court is expected to make a ruling on this procedural issue during the next hearing.
The Broader Implications
The allegations against Dana Air’s MD have sparked significant concern within Nigeria’s business and legal communities. With a total amount of over N1.3 billion involved, this case not only impacts the future of Dana Air and Dana Steel but also raises questions about corporate governance in the country. The Nigerian government’s pursuit of justice in this case has highlighted the need for accountability and transparency in large corporate entities.
Moreover, the failure of a major airline executive to attend court sessions has drawn attention to the issue of legal compliance by high-profile individuals in Nigeria. As the case unfolds, it could set a precedent for how similar cases are handled, especially in the context of financial misconduct and corporate fraud.
As the legal battle continues, the court’s upcoming decisions will determine the next steps, including whether the arrest warrant will be enforced and how the preliminary objection will be resolved. The outcome of this case is eagerly awaited by both legal experts and the general public.
