In yet another case of alleged high-profile bank fraud, the Central Bureau of Investigation booked ABG Shipyard and its Directors. The company has reportedly been accused of perpetrating a fraud worth a mind-boggling Rs 22,842 crore involving 28 banks.
ABG Shipyard allegedly owes Rs 2,925 crore to State Bank of India, Rs 7,089 crore to ICICI Bank, Rs 3,634 crore to IDBI Bank, Rs 1,614 crore to Bank of Baroda, Rs 1,244 crore to PNB, and Rs 1,228 crore to IOB, as per reports. Investigators have claimed that the company used the banks' funds for purposes other than for which they were released.
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The State Bank of India first filed a complaint against ABG Shipyard in November 2019, and the CBI sought clarifications on it in March 2020, as per reports. Subsequently, SBI reportedly filed a fresh complaint in August 2020, leading to a CBI FIR on February 7, this year.
The company's directors Rishi Agarwal, Santhanam Muthuswamy, and Ashwini Kumar have reportedly been booked.
ABG Shipyard allegedly committed fraud through diversion of funds, misappropriation, and criminal breach of trust. A forensic audit report showed the alleged fraud having occurred between April 2012 and July 2017, as per reports.
ABG Shipyard Ltd is the flagship firm of the ABG group, with shipyard in Gujarat's Dahej and Surat, as per reports.