CBI books ABG Shipyard in biggest bank fraud case
ABG Shipyard, the flagship entity of ABG Group, has been reportedly booked by the Central Bureau of Investigation (CBI) over an Rs.22,842 crore financial fraud.
ABG Shipyard is in the business of shipbuilding and repair. Its shipyards are located at Dahej and Surat in Gujarat.
The officials said that in its biggest bank fraud case the CBI has booked ABG Shipyard Limited and its former Chairman and Managing Director Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks led by SBI of over Rs.22,842 crore. The other banks include ICICI Bank (Rs.7,089 crore), IDBI Bank (Rs.3,634 crore), Bank of Baroda (Rs.1,614 crore), PNB (Rs.1,244 crore, and IOB (Rs.1,228 crore).
The case has been registered on a complaint from the State Bank of India alleging criminal conspiracy, cheating, criminal breach of trust, and abuse of official position.
Along with Rishi Kamlesh, others named in the FIR are Rishi Kamlesh Agarwal, Santhanam Muthaswamy, Ashwini Kumar, Sushil Kumar Agarwal, Ravi Vimal Nevetia, and ABG International Private Limited.
CBI official said, “Searches have been conducted on 13 premises of the accused persons in Surat, Bharuch, Mumbai and other places. Further legal proceedings are being initiated.”
The FIR says, The Forensic Audit report dated 18.01.2019 was submitted by M/s. Ernst & Young LP for the period April 2012 to July 2017 revealed that the accused have colluded together and committed illegal activities including diversion of funds, misappropriation, and criminal breach of trust and for purposes other than for the purpose for which the funds are released by the Bank. Funds given by these bodies were used for purposes other than for which they were given.”
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