ABG Shipyard Bank Fraud

February 14, 2022

The Central Bureau of Investigation (SB) has booked ABG Shipyard Ltd, in its biggest bank fraud case.

Highlights

CBI also booked its then Chairman and Managing Director Rishi Kamlesh Agarwal along with others.
They have been booked for cheating a consortium of banks led by State Bank of India of more than Rs 22,842 crore.
They have been charged with alleged offences of criminal conspiracy, criminal breach of trust & abuse of official position and cheating, under the IPC and Prevention of Corruption Act.

SBI’s complaint

SBI had first filed a complaint on November 8, 2019. On this, CBI had sought some clarifications on March 12, 2020. The bank filed a fresh complaint in August 2020, after scrutinising for around one and a half-year. CBI acted on the complaint filing an FIR on February 7, 2022.

What is the issue?

The ABG Shipyard Ltd was sanctioned credit facilities from 28 banks and financial institutions. In thus, SBI was having an exposure of Rs 2468.51 crore. According to forensic audit, between 2012-17, accused colluded together and committed illegal activities like misappropriation, diversion of funds, and criminal breach of trust. Funds were used for other purposes than for which banks released. It is the biggest bank fraud case registered by CBI.

ABG Shipyard Limited

ABG is a Mumbai based shipbuilding company. It is a part of ABG Group of companies, but with diversified business interests. The company was established in 1985, with its headquartered in Mumbai. It has shipbuilding operations in Dahej and Surat in Gujarat. It operates a ship repair unit in Goa, after its acquisition of Western India Shipyard Limited in October 2010. ABG became one among the largest private ship building companies, with a capacity for manufacturing vessels up to 20 tonnes in weight.

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