ABG Shipyard bank fraud: ED files money laundering case over Rs 22,842 crore scam

A money laundering case has been registered by the Enforcement Directorate (ED) against ABG Shipyard Ltd, its former promoters along with others. ED has filed a case for allegedly cheating a consortium of 28 banks of over Rs 22,842 crore, official sources said on Wednesday, February 16. This comes after the CBI filed an FIR in the country's biggest alleged bank loan fraud case to date. 

According to sources, after the investigators studied the CBI complaint and the forensic audit report, ED registered a case under sections of the Prevention of Money Laundering Act (PMLA). It was further mentioned that charges of alleged "diversion" of bank loan funds, creation of shell firms to launder public money, and the role of the executives of the company and others will be specifically studied by the Enforcement Directorate (ED). 

It is learned that huge investments made in the company's overseas subsidiary by diverting the loans will be an essential part of the ED probe. Once money laundering and layering of funds is established, the agency can also move to attach assets of the accused, official sources said. 

ABG Shipyard alleged bank fraud

ABG Shipyard Ltd and its then chairman and managing director Rishi Kamlesh Agarwal, along with others, were booked by the CBI for allegedly cheating the consortium of banks of over Rs 22,842 crore. CC (cash credit) loan, term loan, letter of credit, bank guarantee are the categories based on which the company was given loans. 

The then executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, and another company ABG International Pvt Ltd were also named for alleged offences of criminal conspiracy, cheating, criminal breach of trust, and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act.

After the State Bank of India (SBI) on November 8, 2019, first filed a complaint, the CBI FIR came about and sought some clarifications on March 12, 2020.

Later in August that year, the bank filed a fresh complaint. The CBI filed an FIR on February 7 after "scrutinising" the complaint for over one-and-a-half years. About 28 banks and financial institutions led by ICICI Bank, with the SBI having exposure of ₹2,468.51 crores sanctioned credit facilities to the company. 

(With PTI input)

(Image: PTI/RepresentativeImage)