The CBI has booked ABG Shipyard Ltd and its then Chairman and Managing Director Rishi Kamlesh Agarwal for defrauding a consortium of State Bank of India (SBI).
Biggest Bank Scam: The CBI has booked ABG Shipyard Ltd and its then Chairman and Managing Director Rishi Kamlesh Agarwal for defrauding a consortium of State Bank of India (SBI) of over Rs 22,842 crore, in its biggest bank fraud case. The CBI officials informed on Saturday.
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Apart from Agarwal, the CBI has also registered a case against the then executive director Santhanam Muthaswamy, directors Ashwani Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Pvt Ltd (ABG International Pvt Ltd) under the IPC and prevention of corruption act for alleged offences of criminal conspiracy, cheating, criminal breach of trust and official abuse.
Incidentally, the bank had first filed a complaint against the ABG shipyard on November 8, 2019. The CBI had sought some clarifications on March 12, 2020 on this issue. Also, the bank had filed a fresh complaint in August the same year. After conducting an “investigation” for more than a year and a half, the CBI acted on the complaint that filed the FIR on February 7, 2022.
The officials said that the ABG Shipyard had taken loans from SBI to a total of 28 banks and financial institutions with a total of Rs 2,468.51 crore.
How bank money was misappropriated?
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The forensic audit of the case revealed that between 2012-17, the accused colluded together and carried out illegal activities. It is reported that the company used the funds for purposes other than those issued by the bank, which include misuse of funds, misappropriation and criminal breach of trust.
The case is the biggest case of fraud so far registered by the Central Bureau of Investigation (CBI).
