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ED conducts various raids in multiple locations in ABG Shipyard bank fraud case

Submitted by Seaweblive on Tue, 04/26/2022 - 19:21
ABG Shipyard bank fraud case

There are three locations in Mumbai, Pune, and Surat where the Enforcement Directorate is conducting searches in connection with ABG Shipyard Ltd. The shipbuilding company is accused of defrauding a consortium of 28 banks, lead by the ICICI Bank, of millions of dollars in loans.

According to reports, the Enforcement Directorate (ED) conducted raids on 26 locations associated with ABG Shipyard Ltd in Mumbai, Surat, and Pune on Tuesday as part of an investigation into money laundering allegations against the shipbuilding company. The corporation has been implicated in a purported Rs 22,842 crore bank loan fraud case, according to reports.

ABG Shipyard has been accused of defrauding a consortium of 28 banks, led by ICICI Bank, of millions of rupees. The ED had filed a money laundering case against the former promoters of the shipbuilding company in February after conducting an investigation into a CBI FIR (case) against them.

"As many as 26 premises are being searched in these cities by the federal agency under the criminal sections of the Prevention of Money Laundering Act (PMLA)," they said.

According to a news agency , According to PTI, the CBI and the ED have named Rishi Kamlesh Agrawal, the former chairman and managing director of ABG Shipyard Ltd, as well as other directors of the company, in their respective investigations.

The company had also named the then executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, as well as another company, ABG International Pvt Ltd, for alleged offences including criminal conspiracy, cheating, criminal breach of trust, and abuse of official position, all of which are punishable under the Indian Penal Code (IPC) and the Prevention of Corruption Act.

According to a story in the Hindustan Times, the CBI released a detailed statement in February in which it stated that the majority of disbursements in ABG Shipyard's account occurred between 2005 and 2012 and that the loan account became a non-performing asset (NPA) on November 30, 2013.
Between 2004 to 2014, the United Progressive Alliance (UPA), which was led by Congress, was in power.

A total of Rs 7,089 crore is held by ICICI Bank, followed by Rs 3,639 crore by IDBI Bank, Rs 2,925 crore by State Bank of India (SBI), Rs 1,614 crore by Bank of Baroda, and Rs 1,244 crore by Punjab National Bank (PNB).

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