ABG Shipyard is one of the parts of the ABG Group of companies with different business interests. It was established in the year 1985. Its headquarters is in Mumbai.
ABG is one of the largest private shipbuilding companies in India and can manufacture ships up to 20 tonnes in weight.
The ABG Group’s flagship entity, ABG Shipyard, has been booked by the Central Bureau of India (CBI) over a claimed Rs 22,842 crore financial fraud.
The wires agency officially stated that this is one of the biggest bank fraud cases filed by the CBI. The case is concerned to gotten and misused during the period 2012-17.
The CMD, Rishi Agarwal, was also locked in, along with the company. Other than Agarwal, Santhanam Muthaswamy, Executive Director, the directors of the company- Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, and another company, ABG International Pvt Ltd were also mentioned in the FIR.
The forensic investigation revealed that the accused in the case conspired together and were involved in the diversion of funds, embezzlement, and criminal breach of trust during the period 2012-17.
According to the report, 28 banks and financial institutions were the prey of the alleged scam. The CBI’s FIR stated that the finance provided by these bodies was utilized for other purposes instead of what they were given.
A complaint was registered over the scam by the State Bank of India. It stated that the company is in debt to Rs 2,925 crore. ICICI Bank (Rs 7,089 crore), IDBI Bank (Rs 3,634 crore), Bank of Baroda (Rs 1,614 crore), PNB (Rs 1,244 crore, and IOB (Rs 1,228 crore) are the other banks that are included.
The FIR mentioned that the Forensic Audit report dated 18-01-2019 presented by M/s. Ernst & Young LP during the period April 2012 to July 2017 showed that the accused have conspired together and carried out illegal activities which include diversion of funds, misappropriation, and criminal breach of trust and has utilized the finances for other purposes besides for the purposes which funds are issued by the bank.
ABG Shipyard is well known for shipbuilding and repair. Its yards are located in Surat and Dahej in Gujarat.
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