ABG Shipyard bank loan fraud case | ED carries out raids at 26 premises

Raids were conducted in Mumbai Pune, Surat and other places under Prevention of Money Laundering Act

A view of the ABG shipyard, in Mumbai. File | Photo Credit: PTI

The Enforcement Directorate (ED) on Tuesday carried out raids at 26 premises linked to ABG Shipyard Limited, one of the largest private shipbuilding companies and is accused of cheating 28 banks to the tune of ₹22,842 crore.

The raids were conducted in Mumbai Pune, Surat and other places under the Prevention of Money Laundering Act.

The ED case is based on an FIR filed by the CBI in February. The preliminary inquiry conducted by it stated that huge amounts taken from banks may have been diverted within India and abroad through over 100 companies.

Cheating of consortium

According to the CBI, ABG has cheated a consortium of 28 banks of ₹22,842 crore, with ICICI having ₹7,089 crore, IDBI Bank ( ₹3,639 crore), State Bank of India ( ₹2,925 crore), Bank of Baroda ( ₹1,614 crore) and Punjab National Bank ( ₹1,244 crore).

The CBI and the ED, have named ABG’s former chairman and managing director Rishi Kamlesh Agrawal and other directors of the company.

As per the CBI, a majority of disbursements in ABG Shipyard’s account took place between 2005 and 2012, and the loan account turned into a non-performing asset (NPA) on November 30, 2013.

All the accused are accused of conspiring and committing illegal activities, including diversion of funds, misappropriation and criminal breach of trust.