FIR has been registered by the CBI against the ABG Shipyard, the flagship entity of ABG group for the biggest financial fraud of India worth Rs 22,842 crore.
It is bigger than the Punjab National Bank scam worth approximately Rs 11,500 crore involving Mehul Choksi and Nirav Modi.
What Does ABG Shipyard Do?
ABG Shipyard Limited (ABGSL), a prominent private firm in the Indian shipbuilding industry, has the capacity to build vessels from 18,000 to 1,20,000 deadweight tonnage. The company involved in shipbuilding and repair is located at Surat and Dahej in Gujarat.
The firm has constructed over 165 vessels for leading companies in domestic and global markets in the last 16 years. Specialized vessels from newsprint carriers to dynamic positioning diving support vessels have been built by them.
The first complaint was registered by the State Bank of India on November 8, 2019. On March 12, 2020, the CBI pertained to some clarifications. In August 2020, a fresh complaint was filed.
After the investigation of CBI of more than one and a half years, FIR has been lodged against the ABG Shipyard on February 7, 2022.
A CBI official stated, “Searches have been conducted on 13 premises of the accused persons in Surat, Bharuch, Mumbai and other places. Further legal proceedings are being initiated.”
According to the FIR based on the complaint, credit facilities were given by 28 banks and financial institutions connected with the SBI to the company. Between April 2012 to July 2017, the accused committed illegal activities by diversion and misappropriation of funds.
The funds were used to buy properties illegally by the ABG shipyard. Through Singapore based subsidiary of the company, investments were made. Payouts worth hundreds of crores were given to related parties.
Funds Of 28 Banks Defrauded
Amongst the accused are directors Rishi Agarwal, Ravi Vimal Nevetia, Ashwini Kumar, Sushil Kumar Agarwal and executive director Santhanam Muthuswamy along with the other company ABG International Pvt Ltd.
They are booked under criminal breach of trust and abuse of official position, criminal conspiracy, and cheating under the IPC and the Prevention of Corruption Act.
Circular transactions got detected back to the company. The total market value against the credit facilities given by the 28 banks to the company is worth Rs 22,842 crore.
The ABG Shipyard owes Rs 3,634 crores to IDBI Bank, Rs 2,925 crore to State Bank of India, Rs 7,089 crore to ICICI Bank, Rs 1,244 crore to Punjab National Bank, and Rs 1614 crore to Bank of Baroda amongst the 28 banks.
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