Action in the biggest bank fraud case of 22,842 crores, CBI files case against ABG

The CBI has taken action in the country’s biggest bank fraud case. The Central Investigation Agency has registered a case against ABG Shipyard Limited and its then Chairman and Managing Director Rishi Kamlesh Agarwal, among others. The case was registered in connection with an alleged fraud of over Rs 22,842 crore from a consortium of banks led by State Bank of India, officials said on Saturday. This is the biggest bank fraud case ever registered by the CBI.

All these names in the trial
Apart from Agarwal, the agency has also booked the then Executive Director Santhanam Muthaswamy, directors – Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Private Limited for alleged criminal conspiracy, cheating, criminal breach of trust. and booked for offenses such as official abuse.

Banks had complained in November 2019
He said that these people have been prosecuted under the Indian Penal Code and the Prevention of Corruption Act. The bank’s consortium had first filed the complaint on November 8, 2019, on which the CBI had sought some clarifications on March 12, 2020.

The consortium of banks filed a fresh complaint in August that year and after more than a year and a half of investigation, the CBI acted on it. SBI as well as 28 banks and financial institutions had sanctioned loans worth Rs 2468.51 crore to the company, the official said. He said the forensic audit revealed that between 2012-17, the accused allegedly colluded and carried out illegal activities, including misappropriation of funds and criminal breach of trust.

The agency has taken this action against ABG Shipyard and its directors, two years after the banks declared the company in a ‘fraud account’. According to the CBI FIR, the firm owes ICICI Rs 7,089 crore, IDBI Bank 3634 crore, SBI 2925 crore, Bank of Barora 1614 crore and PNB and Indian Overseas Bank more than 1200 crore.