CBI Action In Country’s Biggest Bank Scam, Case Registered

CBI action in country’s biggest bank scam, case registered against ABG Shipyard, raids at 13 places, know who is accused.

In the country’s biggest bank fraud case, the CBI on Saturday raided the premises of ABG Shipyard Limited and its then Chairman and Managing Director Rishi Kamlesh Agarwal and other accused.

They are accused of cheating a consortium of 28 banks led by the State Bank of India (SBI) to the tune of Rs 22,842 crore.

Case registered under these sections.

Apart from Agarwal, the then executive director of the company, Santnam Muthuswamy, directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevatia and ABG International Pvt. Ltd.

A company named as accused has also been made an accused.

A case has been registered against the company and its officers under sections related to criminal conspiracy, cheating, breach of trust, and abuse of official position under the IPC and Prevention of Corruption Act.

CBI action in country’s biggest bank scam: Raided here.

In a statement issued by the CBI, it has been said that the premises of the accused companies and their then officials were searched on Saturday at 13 places.

These places include Surat, Bharuch, Mumbai, Pune, in which many incriminating documents have been recovered.

Complaint filed for the first time in 2019.

The complaint was first filed by SBI on November 8, 2019, on which the CBI had sought some clarifications on March 12, 2020.

The bank had lodged a fresh complaint in August the same year. After one and a half years of investigation, the CBI had registered an FIR on 7 February.

A forensic audit by Ernst and Young had revealed that the accused misappropriated the money during 2012-17 and diverted it to other items.

The company invested the amount received in the loan in another head.

The CBI has said that the company used the loan amount for purposes other than those issued by banks.

According to the SBI complaint, the company owes Rs 2,925 crore to the bank, 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.

The loan account of the company was declared APA in June 2016.

ABG Shipyard is involved in the repair work.

ABG Shipyard Limited is the flagship company of ABG Group engaged in shipbuilding and ship repair. The shipyard is located at Dahej and Surat in Gujarat.