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Hi Cdesai ,
The order is still exist because Abandoned is an state used for the abandonded order Service.
So the order will be visible until goes to lost state and you remove it.
You can see more about this in here http://docs.oracle.com/cd/E26180_01/Platform.94/ATGCommProgGuide/html/s1602anoverviewofabandonedorders01.html
The Abandoned Order Service was designed to help merchants identify inactive orders and entice the associated shoppers back to the site to complete the orders. An abandoned order remains in the shopper's cart so that the order can be submitted if the shopper returns to the site. The service supports two opportunities for the merchant to interact with a shopper who has left an incomplete order behind. There are two special abandonment states (abandoned and lost) that allow the service can keep track of which orders have already been processed, thereby preventing the application from spamming shoppers with email or other communication. Note that the abandonment states are separate from the main order state, which remains Incomplete.
ATG does not provide any out of the box features for removing inactive orders from shoppers' carts automatically. The business rules and performance requirements for removing inactive and/or old orders can vary signficantly from merchant to merchant.