The CBI books ABG Shipyard, former top brass in the biggest bank fraud case in India of over Rs 22,842 crores.
In its biggest bank fraud case, the CBI has booked ABG Shipyard Ltd and its then Chairman and Managing Director Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks led by State Bank of India of over Rs 22,842 crore, officials said Saturday.
CBI has also named the then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, and another company ABG International Pvt Ltd for alleged offenses of criminal conspiracy, cheating, criminal breach of trust, and abuse of official position under the IPC and the Prevention of Corruption Act, they said.
The bank had first filed a complaint on November 8, 2019, on which the CBI had sought some clarifications on March 12, 2020. The bank filed a fresh complaint in August that year. After “scrutinizing” for over one and a half-year, the CBI acted on the complaint filing an FIR on February 7, 2022. The bank filed a fresh complaint in August that year.
The company was authorized credit facilities from 28 banks and financial institutions with the SBI having exposure of Rs 2468.51 crore, they said. The Forensic Audit has shown that between 2012-17, the accused colluded together and committed illegal activities including diversion of funds, misappropriation, and criminal breach of trust, they said.
It is the biggest bank fraud case in India registered by the Central Bureau of Investigation (CBI). Funds were used for purposes other than for which they were released by banks, it said.
The State Bank releases its statement on Twitter
Press release about ABG Shipyard issue. @DFS_India @FinMinIndia
Our statement -: pic.twitter.com/RP71DBhePD
— State Bank of India (@TheOfficialSBI) February 13, 2022