ALX Shipping Refutes Rs 325 Crore Fraud Claims, Counters with EOW Complaint

ALX Shipping Agencies (India) Pvt., a subsidiary of the Allcargo Group, has vehemently denied fraud allegations amounting to Rs 325.00 crore leveled by Vishal Mehta, the promoter of Rushabh Sealink and Logistics Pvt. In a significant turn of events, ALX has filed a counter-complaint with the Economic Offences Wing (EOW) of Mumbai Police, accusing Mehta and the company's former CEO, Sandeep Bakshi, of serious financial misconduct.

Counter-Allegations and Internal Investigation

ALX's counter-complaint alleges criminal breach of trust, forgery, and conspiracy against Mehta and Bakshi. The company's internal investigation has reportedly uncovered troubling practices:

• Unauthorized agreements were executed without proper board approval
• Post-dated cheques were issued, potentially exposing the company to financial risk
• These actions allegedly put ALX at significant financial and reputational risk

As a result of these findings, ALX has suspended Bakshi from his position as CEO.

Refuting Cargo Diversion Claims

The shipping agency has dismissed allegations of cargo diversion and shipment delays as fabricated. ALX clarified its role in the shipping process, stating that it only represents shipping lines and does not have operational control over ship movements. According to the company, the cargo in question has already sailed to Djibouti.

Background of the Dispute

The counter-complaint comes in response to Mehta's initial allegation of a Rs 325.00 crore fraud against ALX Shipping. While the details of Mehta's complaint are not fully disclosed, the magnitude of the alleged fraud and the subsequent counter-action by ALX underscore the severity of the dispute.

Implications for the Shipping Industry

This high-profile case highlights the complex relationships and potential vulnerabilities in the shipping and logistics sector. It also emphasizes the importance of robust internal controls and governance structures in shipping agencies, especially those handling significant financial transactions and cargo movements.

As the case unfolds, it is likely to draw attention to industry practices and may potentially lead to closer scrutiny of operations in the shipping and logistics sector. Both parties' allegations will be subject to investigation by the Mumbai Police's Economic Offences Wing, with the outcome potentially having far-reaching consequences for the companies involved and the broader industry.

The shipping and logistics community will be closely watching the developments of this case, as it could set precedents for how similar disputes are handled in the future and may influence industry practices and regulations.