new Delhi14 hours ago
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Gujarat-based ship-building firm ABG Shipyard fraud with 28 banks in 5 years between 2012 and 2017
The Central Bureau of Investigation (CBI) on Thursday questioned former Chairman and Managing Director (CMD) of ABG Shipyard Limited Rishi Kamlesh Agarwal in connection with the Rs 22,842 crore bank fraud case. This action comes a few days after the investigating agency filed an FIR in the country’s biggest bank loan fraud case till date.
The CBI had registered a case against Rishi Kamlesh Agarwal and others for fraud of more than Rs 22,842 crore from a consortium of 28 banks. A case was also registered against the then executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and people related to another company ABG International Pvt Ltd.
ED had also registered a case
On Wednesday, the Enforcement Directorate (ED) also registered a criminal case of money laundering against ABG Shipyard, its former promoters and others. Earlier, on February 12-13, the CBI had raided the offices and houses of the directors in Surat, Bharuch, Mumbai and Pune, in which important documents were recovered.
Fraud with 28 banks in 5 years
In the 5 years between 2012 and 2017, Gujarat-based ship-building firm ABG Shipyards committed fraud with 28 banks. SBI conducted a forensic audit in 2019 with the help of Ernst & Young. The audit found that the fraud took place over a period of five years from April 2012 to July 2017. However, the first complaint to the CBI was made in November 2019.
ABGSL owes Rs 22,842 crore to banks
ABGSL now owes Rs 22,842 crore to banks. ICICI Bank Rs 7,089 crore, SBI Rs 2,925 crore, IDBI Bank Rs 3,639 crore, Bank of Baroda Rs 1,614 crore, Punjab National Bank Rs 1,244 crore, Exim Bank Rs 1,327 crore, Indian Overseas Bank on shipping company 1,244 crore and Bank of India Rs 719 crore. Apart from this, some other banks also have dues. Findings of SBI’s audit report had revealed that the fraud was committed through fund diversion.
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