Biggest Bank Fraud: CBI charges ABG Shipyard with huge amount of Rs 22,842 Cr Loan Fraud
It has been filed against ABG Shipyard and its directors, who are accused of defrauding a group of 28 banks. The case has also been filed against unknown public servants, but they haven’t been named.
Twenty-eight different banks are said to have been scammed by the accused, and they allegedly cheated branches of the State Bank of Patiala, the State Bank of Travancore, and the Indian Overseas Branch of the State Bank of India.
This is the biggest bank fraud so far. The Central Bureau of Investigation has filed charges against a private company and others for defrauding a group of banks of Rs 22,842 crores (approx.).
What strict action has been taken by the CBI against ABG Shipyards?
It has been filed against ABG Shipyards and its directors, who are accused of defrauding a group of 28 banks. The case has also been filed against unknown public servants, but they haven’t been named.
Twenty-eight different banks are said to have been scammed by the accused. They allegedly cheated them, including the State Bank of Patiala’s Commercial Finance Branch branches in New Delhi, the State Bank of Travancore’s Commercial Branch in New Delhi, and more.
ICICI Bank led a group of 28 other banks that agreed to work together to help people. As a private company, Surat (Gujarat) built ships and fixed them.
It is also said that the defendants worked together to divert money from the bank’s account for a different purpose than the one for which the money was given.
A private company is said to have transferred a lot of money to people related to it and then changed its books. In addition, it is said that a lot of money was invested in a branch of the private company in another country. The CBI has also said that money from banks was used to buy a lot of property in the names of people related to the CBI.
On Saturday, the investigators from the agency searched 13 places in the homes of the accused, including a private company and its directors in Surat, Bharuch, Mumbai, and Pune. The agency says it has found documents that could be bad for them.
People in charge at ABG Shipyard Limited, one of the largest private shipyards in India, have charged them with bank fraud (CBI). People at ABG Shipyard are accused of defrauding 28 banks out of more than $22.8 billion. The CBI filed a case against them and other people on Saturday.
Another person named by the agency is former executive director Santhanam Muthaswamy and directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and a company called ABG International Pvt Ltd.
They are all accused of crimes like criminal conspiracy, cheating, criminal breach of trust and abuse of official power under the IPC and the Prevention of Corruption Act.
ABG Shipyard Ltd is the leading company in the ABG Group, which makes and repairs ships, and it is also the largest company in the group. The shipyards are in Dahej and Surat in the state of Gujarat.
Nirav Modi and Mehul Choksi are two of the biggest bank frauds that the CBI will be looking into. It’s even more significant than the Punjab National Bank scam involving Nirav Modi and Mehul Choksi.
The State Bank of India (SBI) filed a complaint with the police, and the forensic audit report said that from April 2012 to July 2017, the accused worked together and did illegal things, like divert funds, misappropriate money, and break trust, for reasons other than what the bank gave them.
Bank of Baroda: Rs 2,925 crore. State Bank of India: Rs 7,089 crore; Rs 3,634 crore; Rs 1,614 crore; Rs 1,244 crore; Rs 1,228 crore; and Rs 2,925 crore. The CBI said that money was used for things other than banks let it out.
The investigation agency said that the company was given loans from 28 banks and other financial institutions. The SBI had an exposure of Rs 2468.51 crore. The State Bank of India first complained about November 8, 2019. On March 12, 2020, the CBI asked for more information about the complaint.
Even more, the bank filed a new complaint about the same thing in August of that year. After more than a year and a half of “scrutinising,” the CBI filed an FIR on February 7, 2022.
One of the group founders is Rishi Agarwal, who has been a major player in the Indian shipbuilding business. As of 2016, ABG Shipyard Limited (ABGSL) has two shipyards that can build up to 18,000 deadweight tons (DWT) of ships, and Surat Shipyard can also build vessels up to 1,20,000 deadweight tons (DWT).
Over the last 16 years, ABG shipyard has built more than 165 ships, including 46 for the export market. These ships include specialised vessels like newsprint carriers, self-loading bulk cement carriers, floating cranes, interceptor boats, dynamic positioning diving support vessels, pusher tugs, and flotillas for big companies in India and worldwide.
Conclusion:
The Central Bureau of Investigation (CBI) has filed charges against a private company and others for defrauding a bank of Rs 22,842 crores. A case has been filed against ABG Shipyards and its directors, accused of duping 28 banks. They allegedly cheated them, including the State Bank of Patiala’s Commercial Finance Branch branches in New Delhi, Travancore’s Commercial Branch branches in Delhi, and more. The CBI has also said that money from banks was used to buy a lot of property in the names of people related to the CBI. ABG Shipyard is one of the largest private shipyards in India.
The CBI filed a case against them and other people on Saturday. They are accused of defrauding 28 banks of more than $22.8 billion. It’s even more significant than the Punjab National Bank scam involving Nirav Modi and Mehul Choksi. The State Bank of India first complained about November 8, 2019. On March 12, 2020, the CBI asked for more information about the complaint.
After more than a year and a half of “scrutinising,” the CBI filed an FIR on February 7, 2022. As of 2016, ABG Shipyard Limited has two shipyards that can build up to 18,000 deadweight tons (DWT) of ships.
